Bernanke to replace Greenspan as head of US Federal Reserve

Alan Greenspan, the chairman of the US Federal Reserve who was once described as “the greatest central banker who ever lived”, is to be replaced in January by former Federal Reserve governor Ben Bernanke.

Greenspan has been in charge of US monetary policy for 18 years, and has seen two stock market crashes and two recessions during his tenure.

Paul Niven, head of strategy at F&C Asset Management, says: “Bernanke has been vocal in using inflation targeting, rather like the Bank of England, where the central bank is explicit in its aims over target inflation levels. This is not the explicit aim of the US Federal Reserve.

“UK investors may not yet have heard of Bernanke, but he has just been handed the biggest job in global finance.”