Former Federal Reserve Chairman Alan Greenspan dies at 100

WASHINGTON (AP) — Former U.S. Federal Reserve Chair Alan Greenspan died Monday from complications of Parkinson’s disease, said his wife of 29 years, NBC News correspondent Andrea Mitchell. He was 100.

“To me he was my husband, who shaped my life from our very first date in 1984," Mitchell said. "He had ‘irrational exuberance’ for baseball, the Washington Commanders, tennis, golf, and music, especially jazz. He will be remembered for his brilliance and his kindness. Being his life partner was the joy of my life.”

In his 18½ years at the helm of the Fed, Greenspan presided over a sustained era of American growth and prosperity, yet one that ended with devastating consequences in 2008, two years after he had left the central bank.

Greenspan was so respected during his many years as head of the world’s most influential central bank that by the time he stepped down in 2006, he was widely celebrated as the “Oracle’’ and “Maestro.’’

He presided over a breathtaking surge in stock prices and a 10-year economic boom that began in March 1991. He was widely celebrated as a virtuoso who nurtured America’s economic well-being and whose nearly every utterance was parsed for clues as to where interest rates, the economy and the financial markets might be headed.

The intense scrutiny of Greenspan’s intentions gave birth to new Fed folklore: The “Briefcase Indicator.” A stuffed briefcase carried into Fed meetings implied changes might be afoot because Greenspan carried with him charts and research to make his point.

“Under his leadership, the Federal Reserve achieved a sustained era of price stability that supported economic growth and helped anchor the public’s confidence in the institution,” the Fed said in a statement Monday. “He brought rigorous analytical discipline to monetary policymaking and helped establish the credibility that remains one of the Federal Reserve’s most important assets.”

Greenspan’s reputation suffered a serious setback, however, soon after he left the Fed in 2006. The American housing market collapsed, igniting a global financial crisis that nearly toppled the U.S. banking system and plunged the economy into the worst recession since the 1930s.

Critics pinned much of the blame for the crisis on Greenspan’s easy-money policies and on what they believed was an overexuberant faith in lightly supervised financial markets.

Greenspan himself later acknowledged that “I made a mistake’’ in assuming the nation’s banks, whose stability undergirds the financial system and the entire economy, could essentially regulate themselves.

As housing values plummeted, millions of Americans, many of them stuck with outsize mortgage debt, lost homes to foreclosure. The spiraling financial crisis sent the U.S. economy sinking into the Great Recession of 2007-2009.

The crisis in the U.S. rapidly spread overseas, leading to a debt crisis for nations in Europe. China also engineered a massive government stimulus package to stabilize its economy.

Until then, however, it seemed that Greenspan could do no wrong. Not only in the United States but across the world, he was regarded with a mixture of reverence and awe. Many openly dreaded the day when he would leave the Fed.

Investors hung on his sometimes inscrutable observations. In the most well-known such remark, Greenspan sent financial markets reeling on Dec. 5, 1996, when he suggested with just two words — “irrational exuberance” — that stock prices were too high.

Mindful of his power to move markets, Greenspan typically resorted to obfuscation. At times, he even satirized his habit of doing so.

“I know you believe you understand what you think I said, but I am not sure you realize that what you heard is not what I meant,” Greenspan once told a befuddled congressional committee.

Born in the Washington Heights neighborhood of Manhattan, the young Greenspan was a math whiz who was trotted out by his mother to show off for visitors.

“I was a prop at parties,’’ he said in a 2007 interview with PBS NewsHour. A Julliard School dropout, he worked as a professional musician in his teens, playing clarinet and saxophone alongside the future jazz great Stan Getz — a humbling experience that persuaded the young Greenspan to seek another line of work.

He pursued undergraduate and graduate study in economics at New York University, eventually earning a doctorate there. For most of three decades, he ran an economic consulting firm. During the 1950s, he became a disciple of the libertarian philosopher Ayn Rand, who stuck him with the nickname the “Undertaker’’ for his dark clothes and quiet bearing. When Greenspan was sworn in as President Gerald Ford’s chief economic adviser in 1974, Rand stood beside him.

President Ronald Reagan tapped Greenspan to run the Fed in 1987. He was tested almost immediately. On Oct. 19, 1987, which came to be known as “Black Monday,” the stock market suffered the worst one-day percentage loss in American history just two months into his term. The Dow Jones Industrial Average shed 22.6% of its value rapidly for reasons that weren’t entirely clear then, and remain opaque to this day.

Greenspan won credit for helping restore calm and stability. He assured Wall Street that the Fed would supply as much money to the financial system as was needed to restore calm. Stocks recovered, and the American economy emerged unscathed by the market crash.

Greenspan’s crisis management skills were tested again in 1997 and 1998, when a financial crisis in Asia threatened to spread economic devastation around the globe. Under Greenspan, the Fed arranged an emergency loan to Thailand and persuaded U.S. banks to roll over short-term loans to a teetering South Korea.

During his tenure at the Fed, Greenspan drew praise for presiding over what was at the time the longest economic expansion in American history. Over that time, the nation’s unemployment rate briefly dropped below 4% for the first time since 1970.

And inflation, which had bedeviled the United States and much of the global economy during the 1970s, was remarkably dormant during Greenspan’s chairmanship, something many economists had not thought could occur for so long a period.

During the long boom, Greenspan argued that improvements in technology had made the economy so efficient that it could run faster, at lower rates of unemployment, without unleashing inflation. As a consequence, the theory went, the Fed could keep interest rates low even when the economy was roaring.

As Fed chair, Greenspan relished poring over obscure economic data, from monthly boxcar loadings to steel production, all in a bid to assess where the economy was going. He would often phone economists at other government agencies to discuss details. He would rise early each morning for a two-hour soak in his bathtub, time that he used to review statistics and Fed staff memos.

Improbably, Greenspan also made the gossip pages as something of an unlikely ladies’ man. He dated the television journalist Barbara Walters and later married Mitchell after a 12-year courtship. They had no children.

Greenspan had dated Walters while working as an adviser to President Gerald Ford. According to a biography of Greenspan, “The Man Who Knew” by Sebastian Mallaby, when Ford read a newspaper item about the pair, he cut it out and sent it to his chief of staff, Dick Cheney, with a note that said, “I don’t believe it.”

All along, Greenspan held fast to the belief that financial markets could largely regulate themselves. With officials from President Bill Clinton’s White House, he helped block efforts by Brooksley Born, the nation’s top commodities regulator, to bring federal oversight in the late 1990s to the shadowy market in over-the-counter derivatives. The derivatives allowed speculators to make bets on everything from the price of oil to high-risk mortgages.

Eventually, history would vindicate Born, not the Maestro.

The low interest rates Greenspan had engineered helped swell housing prices into a dangerous bubble. And the financial deregulation he supported allowed banks and other financial firms to pile up huge risks, often hidden from government supervision. Bad derivatives bets helped sink insurance giant American International Group, which required a $180 billion taxpayer bailout.

The Financial Crisis Inquiry Commission, which was assigned to investigate the debacle by Congress, concluded:

“More than 30 years of deregulation and reliance on self-regulation by financial institutions, championed by former Federal Reserve chairman Alan Greenspan and others ... had stripped away key safeguards, which could have helped avoid catastrophe."

In the years after stepping down as Fed chairman in 2006 just shy of his 80th birthday, Greenspan kept busy doing what he loved to do most — following the economic data. He ran his own consulting firm, Greenspan Associates, through which he dispensed advice to Wall Street clients and collected handsome speaking fees.

He kept up a busy schedule well into his 90s, writing his memoir and two other books on the economy, as well as opining on the latest economic developments on television news shows.

He also signed onto opinion articles and statements defending the Federal Reserve’s political independence from President Donald Trump’s ongoing attacks. In January 2026 he signed a statement criticizing the Trump administration’s investigation of Fed Chair Jerome Powell. The statement, which was also signed by two other former Fed chairs and five former Treasury secretaries, called the investigation “an unprecedented attempt to use prosecutorial attacks to undermine” the Fed’s independence and warned it would have “highly negative consequences for inflation.”

Greenspan’s tenure as Fed chairman — from August 1987 through January 2006 — was just five months shy of the longest Fed chairman’s tenure. That distinction belonged to William McChesney Martin, who served from 1951 until early 1970.

In his 2013 book “The Map and the Territory,’’ Greenspan defended himself against critics who assigned him significant blame for the 2008 financial meltdown. He argued that traditional economic forecasting was no match for the irrational risk-taking that can feed catastrophic price bubbles.

“Bubbles go up very slowly as euphoria builds,” Greenspan said in a 2013 interview with The Associated Press. “Then fear hits, and it comes down very sharply. When I started to look at that, I was sort of intellectually shocked.”

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AP Economics Writers Christopher Rugaber and Martin Crutsinger contributed to this report.

FILE - President George Bush gestures while meeting with economic advisors in the Cabinet Room of the White House, Jan. 15, 1991. Federal Reserve Board Chairman Alan Greenspan, center, and White House Chief of Staff John Sununu look on. (AP Photo/Doug Mills, file)

FILE - President Reagan congratulates Alan Greenspan after he was sworn-in as new chairman of the Federal Reserve Board during a ceremony at the White House in this Aug. 11, 1987. (AP Photo/Barry Thumma, file)

FILE - Alan Greenspan chairman of the Council of Economic Advisers, chats with newsmen prior to his appearance on NBC's "Meet the Press", Sept. 29, 1974, in Washington. (AP Photo/Bob Daugherty, file)

FILE - Former Federal Reserve Chairman Alan Greenspan testifies on Capitol Hill in Washington, Wednesday, April 7, 2010, before the Financial Crisis Inquiry Commission (FCIC) hearing examining the causes of the collapse of major financial institutions caused by subprime lending. (AP Photo/J. Scott Applewhite, file)

FILE - Economist Alan Greenspan, chairman of the Federal Reserve from 1987 to 2006, is seen in his office in Washington, Friday, Oct. 18, 2013. (AP Photo/J. Scott Applewhite, file)

U.K. Prime Minister Keir Starmer resigned on Monday, paving the way for Britain to have its seventh prime minister in just over a decade.

He said he was stepping down as leader of the governing Labour Party but would remain caretaker prime minister until a new head is chosen by the party.

Andy Burnham, who won a special parliamentary election last week, confirmed that he will run to succeed Starmer.

Starmer won a landslide victory in the 2024 general election, but a series of missteps badly damaged his credibility.

His resignation comes the day before Britain marks the 10th anniversary of its vote to leave the European Union, a decision that still roils the country’s economy and politics.

Here's the latest:

A leadership contest would strengthen Britain’s new government because it would give front-runner Andy Burnham the chance to lay out his policies before becoming prime minister, said Victoria Honeyman, a professor of politics at Leeds University.

Burnham arrived in London on Monday to take up his seat in Parliament following a special election victory last week.

“If you are Andy Burnham, you want a bit of a proper contest because these kinds of show contests where it’s basically all decided are not necessarily good for anybody,” Honeyman said. “It isn’t good for the country because it doesn’t really kind of wrinkle out all of the issues that people want to talk about. You don’t really get a very good view of the individuals that are competing for the role.”

But Burnham won’t want the contest to be “too bruising,” she said, “because you don’t want the party to be criticized too massively publicly, and you want to be able to present yourself as being unified, which is very difficult if it’s quite a vicious battle.”

Because many people see him as the best person to defeat the anti-immigrant Reform Party at the next election, according to Olivia O’Sullivan, the director of the UK in the World Program at the Chatham House think tank.

Burnham’s greatest asset is that he appeals to Labour Party lawmakers who were frustrated by the way Starmer has governed, O’Sullivan said. The hope is that he will set out a “clearer vision” and connect with voters in parts of the country that are in danger of turning to the Reform Party, she said.

Burnham was elected to Parliament last week after decisively defeating a Reform candidate in a special election.

“He won a very strong majority in precisely the type of area, the type of constituency that the Labour Party is worried it’s losing,” O’Sullivan said. “So it may be that a lot of his appeal is centered in the fact that he seems to connect better with those voters and offer a clearer vision. But it’s absolutely correct that that is not the same thing as offering a radically different set of policies or even a particularly clear policy program.”

“Keir, thank you for all our cooperation, your support, and the joint decisions that have helped make our Europe and our protection of life stronger," Volodymyr Zelenskyy wrote on X.

"Here in Ukraine, we deeply value Britain, and every meeting and every conversation we have had has always been filled with real substance ... I wish the United Kingdom and all British people every success as well as realisation of your national goals. We have confidence in Britain.

Keir, you are always a welcome guest in Ukraine.”

Nigel Farage, who leads the anti-immigration party, wrote on X that “Reform demands an election, and we are ready to deliver radical change.”

“If Labour thinks it can shove another professional politician into No 10, it has another thing coming,” he said.

Farage said Labour has betrayed voters’ trust, citing the Starmer government’s unpopular welfare and tax policies and illegal immigration as examples of the party’s failings.

Britain’s next national election doesn’t have to be held until 2029. British politics allows parties to change leaders midterm without the need for a general election.

António Costa said on Monday that Starmer helped turn “a new page” in EU-UK relations ten years after Brexit.

“We turned a new page in EU-UK relations,” Costa said in a social media post. “The EU is committed to continued cooperation in this spirit.”

Starmer was seen as repairing relations with Brussels following Brexit and had helped schedule an EU-UK summit for July 22.

But on Monday, the European Commission said they were reassessing that plan.

“I respect the decision he has made,” Jonas Gahr Støre, a fellow center-left leader, said in a statement.

“The United Kingdom is Norway’s close ally in Europe, and over the past two years our countries have grown even closer through important agreements," he said.

Støre added: “We have worked closely together to strengthen security cooperation in Europe and to support Ukraine.”

In a post on X, Andy Burnham thanked Starmer for his service and leadership.

He said Starmer’s decision to step down “marks the beginning of a transition and it is important that this process is conducted in an orderly and responsible way. I will put myself forward as part of this process.”

“The country expects stability, seriousness and a continued focus on the issues that matter most and that is what it will get.”

He added: “People want to see progress on economic growth, cost of living, public services, housing and opportunities for the next generation. Political change should never distract from the responsibility to improve people’s lives.”

Former Manchester Mayor Andy Burnham confirms he will run to succeed Keir Starmer as Labour leader and prime minister.

Wes Streeting, considered another leading contender, said he will back Burnham. That makes it more likely that Burnham will be selected without a leadership contest.

Ed Davey, the Liberal Democrat Leader, said Starmer’s replacement would have to change “our broken politics.”

“The British people are sick of being let down by an endless merry-go-round of prime ministers while nothing really changes for them,” he said. “This time must be different. It can’t just be about changing who’s in No. 10, it has to be about changing our broken politics so we can fix our country.”

Zack Polanski, who leads the Green Party, echoed that the U.K. needs a “bold change of direction.”

Referring to former Greater Manchester mayor Andy Burnham, who many expect to become the next Labour leader, Polanski said: “The time for half measures and sticking plasters is long gone — if he becomes the next PM, Burnham must be bold or he will be bust.”

“The German government has always had in Keir Starmer a reliable and close partner in foreign policy questions, particularly regarding Ukraine,” Chancellor Friedrich Merz’s spokesperson, Stefan Kornelius, told reporters. He declined to comment on the “internal motives in Britain.”

He said the government believes a meeting that Merz plans to host in Berlin Wednesday of the so-called “E5” — Germany, France, Britain, Italy and Poland — will go ahead as planned despite Starmer’s announcement. The meeting is meant as part of preparations for the upcoming NATO summit.

"Walking up this street two years ago was the proudest moment of my life. A new Labour government. The first in 14 years. A page in our country’s history turned after years of disappointment and despair. ... The chance to change the lives of millions of people for the better. That’s what I came into politics for. The journey to that point was not easy."

“The question my party is asking now is whether I am best placed to lead us into the next general election. I have heard the answer of my parliamentary party to that question. And I accept that answer with good grace."

“Every decision I’ve taken has been about putting the country I love first. That is why I will resign as leader of the Labour Party. I have spoken to His Majesty the King this morning to inform him of my decision.

“I will remain in post as Prime Minister until the contest is complete. And I will do everything I can to ensure an orderly handover of power.”

Starmer stood behind a lectern featuring a crest with a lion and a unicorn.

One is not a native of the U.K. and the other is mythical.

Both have shared the distinction of being part of the royal coat of arms since the 17th century.

The lion, although never living in the wild of England, is its national animal. The unicorn, though fictional, is Scotland’s official animal.

The two became part of the crest when the two crowns were united in 1603, when King James I ascended the throne in England; he was already King James VI in Scotland.

When he was elected in 2024 in a landslide victory for Labour, Starmer pledged to steady the ship and end years of political chaos under his successors, the Conservative Party.

Starmer had succeeded Rishi Sunak, who held the top job from 2022 to 2024.

Before Sunak, Liz Truss lasted only 45 days. Truss followed three other Conservative prime ministers: Boris Johnson (2019-2022), Theresa May (2016-2019), and David Cameron (2010-2016.)

Starmer said Monday that nominations will open on July 9 and close when Parliament breaks up for its summer recess, which is scheduled to begin July 16. The contest will be open to members of Parliament from the ruling Labour Party.

Former Manchester Mayor Andy Burnham is the leading candidate to replace Starmer. The question now is whether anyone will challenge him.

If there is no challenge, Burnham could become Labour leader and thus prime minister soon after nominations close. Even if there is a contest, Starmer said a successor would be selected by Sept. 1.

European Commission President Ursula von der Leyen praised Starmer’s legacy after news of his resignation in a post online on Monday.

“It can take many leaders years to grow into the statesman you became in just two years,” she said on X. “European and Ukrainian security is stronger because of you. Thank you, dear Keir.”

Starmer’s voice choked with emotion near the end of the brief statement.

“The question my party is asking now is whether I am best placed to lead us into the next general election,” Starmer said. “I have heard the answer of my parliamentary party to that question, and I accept that answer with good grace.”

British Prime Minister Keir Starmer says he is stepping down as leader of the governing Labour Party.

Starmer says he will remain caretaker prime minister until a new Labour leader is chosen in the next few weeks.

Starmer made the announcement after facing growing pressure to hand over to a new leader who can try and revive the government’s flagging fortunes. He has been in office since leading Labour to a landslide election victory in July 2024. In those two years, his popularity and that of the party have plummeted.

As Starmer began his speech, protesters nearby played the EU anthem, Beethoven’s “Ode to Joy.”

Expectation is building that U.K. Prime Minister Keir Starmer will set out a timetable for his resignation, conceding to pressure from his Labour Party to hand over the reins of power.

If he does, Starmer will be the sixth prime minister in a decade to stand outside 10 Downing Street and announce a premature departure.

Starmer spent the weekend pondering his future following the victory of intraparty rival Andy Burnham in a special election for a seat in Parliament. Burnham, until last week the Labour mayor of Greater Manchester, ran with the aim of challenging Starmer for leadership of the party and the country.

Burnham is due to be sworn in as a member of Parliament on Monday.

Britain's Prime Minister Keir Starmer hugs his wife Victoria after he announced his resignation outside 10 Downing Street in London, Monday, June 22, 2026.AP Photo/Thomas Krych)

Britain's Prime Minister Keir Starmer and wife Victoria stand in front of 10 Downing Street door after after announcing his resignation in London, Monday, June 22, 2026.(AP Photo/Thomas Krych)

FILE - Labour party's Andy Burnham speaks after winning the Makerfield by-election, paving the way for a leadership challenge against Prime Minister Sir Keir Starmer. in Wigan, England, Friday, June 19, 2026.(AP Photo/Jon Super, file)

Britain's Prime Minister Keir Starmer and wife Victoria step out to speak to the media outside 10 Downing Street in London, Monday, June 22, 2026.(AP Photo/Kin Cheung)

Larry the cat, Chief Mouser to the Cabinet Office waits on the doorstep of 10 Downing Street in London, Monday, June 22, 2026 as expectations are growing that Britain's Prime Minister Keir Starmer will announce his resignation soon.(AP Photo/Kin Cheung)

Britain's Labour Party leadership candidate Wes Streeting speaks in central London, Tuesday June 16, 2026. (Gareth Fuller/PA via AP)

Labour party's Andy Burnham speaks after winning the Makerfield by-election, paving the way for a leadership challenge against Prime Minister Sir Keir Starmer. in Wigan, England, Friday, June 19, 2026.(AP Photo/Jon Super)

Britain's Prime Minister Keir Starmer gestures as he speaks with local residents as he visits a housing development in north London, Friday, June 19, 2026. (Peter Macdiarmid/Pool Photo via AP)