Alan Greenspan: the Most Powerful Guy With the American's Midterm Elections over, and a new Commander-in-Chief about to step in, some Americans are a little nervous about the nation's future. But others feel secure, knowing that the man they consider the most powerful person in the world isn't going anywhere. Just who is this behind-the-scenes guy they think has more power than George W. Bush ever will? He's Alan Greenspan, a 74-year-old expert economist who heads the Federal Reserve, commonly known as the Fed. Unlike the president, who has to please the voters and compromise with Congress, Greenspan doesn't have to answer to anyone. But that doesn't mean his job is easy. Basically, Greenspan is in charge of keeping the nation's economy stable. The economy is sort of like a balloon: blow in too much air, and it pops. But with too little air, it falls to the floor. Greenspan helps decide when to blow more air into the economy. In this case, the air in a balloon is. the amount of money in the economy. Greenspan can make the economy grow by increasing the money supply, or keep the economy from inflating too much by decreasing the money supply. His goal is for the economy to grow and contract gradually. Rapid changes can harm businesses and consumers. Translating 'Greenspan—Speak' In a speech lately, Greenspan hinted the Fed was concerned the economy might be slowing down too fast. What Greenspan actually said was that the Fed should 'remain alert to the possibility that greater caution and weakening asset values in financial markets could signal or precipitate(促成) an excessive softening in household and business spending. 'But what investors heard was: 'I may lower interest rates which will make it easier for the companies you are investing in to borrow money. That means they'll expand and their stock will be worth more in the future.' Within hours of Greenspan's remarks, so many investors bought stocks that the Dow Jones and the NASDAQ rose by three percent and ten percent that day. The value of some companies went up by millions of dollars, just because investors had confidence in Greenspan's words. Increasing Influence But Greenspan doesn't just work magic by talking. He was educated at New York University and Columbia and appointed to his job in 1987 by President Ronald Reagan. And he's credited with steering the country through some difficult times since then, including a serious stock market crash just after he took the job. Another reason Greenspan has become almost a celebrity in America, is that more people are paying attention to the stock market than ever before. It used to be that only rich people and powerful corporations had the extra money to invest in stocks. But the U.S. economy has done so well in recent years, that more and more ordinary people are investing in stocks. Who is Greenspan? He's a native New Yorker. His first focus was music: He attended New York's Julliard School and toured the country for a year in the early 1940s, playing in the Henry Jerome swing band(摇摆乐队). If nothing else, friends believe, this experience of US travel gave him the ability to connect dispassionate(不带感情的) economic theories with the individuals they affect. 'The most outstanding thing about his is he knows the American economy…,' says friend Herbert Stein, an economist. A swing into economics carried him straight into moderate Republican politics. He advised Richard Nixon in his 1968 campaign, and served briefly in the Bureau of the Budget. Seven years later, he returned to government service, replacing Mr. Stein as chair of the Council of Economic Advisers in the final days of Nixon presidency. He agreed only after being assured that Vice President Ford would keep him. In that