Cautious Fed chairman moves to cut rates

IF Alan Greenspan was still in charge at the US Federal Reserve Bank it is probable that would have cut rates before now.

As boss of the world’s leading central bank from 1987 to 2006 he demonstrated his willingness to move quickly, trusting his instincts as much as anything else when deciding to cut rates.

Greenspan’s pedigree was different to Ben Bernanke, the present leading man, in the current credit crunch crisis being played out in the US and global markets, where fears over bad debt exposure is preventing banks from doing business with each other.