Greenspan to set up consulting firm: report

TOKYO (Reuters) – Federal Reserve Chairman Alan Greenspan
plans to establish a consulting firm called Greenspan
Associates in Washington after he leaves the central bank at
the end of the month, the Wall Street Journal reported on
January 26, quoting people familiar with the matter.

The paper said Greenspan also plans to give speeches and
write a book.

Michelle Smith, who the Fed said on Wednesday will leave
her job as director of its office of board members to join
Greenspan’s new firm, will be among his first hires, the paper
said.

After joining the Fed in 2001, Smith served in effect as
Greenspan’s chief of staff, advising him on relations with the
public, politicians and the media, the paper cited Fed insiders
as saying.

Greenspan, who has been Fed chairman for 18 years, is due
to step down on January 31. A Fed policy meeting on that day is
widely expected to raise the federal funds rate by 25 basis
points to 4.5 percent.

The Fed has lifted its overnight funds rate 13 times since
June 2004.