Greenspan on the griddle: Congress grills the Fed chairman and produces more heat than light. Who are these folks on Capitol Hill?

• Author: Ullmann, Owen
• Position: Alan Greenspan - Federal Reserve

At least half a dozen times a year, Federal Reserve Chairman Alan Greenspan treks up to Capitol Hill to report to Congress on an array of financial and economic issues. Whether his testimony focuses on monetary policy, financial markets, the federal budget, energy policy, or trade, Greenspan's words command the world's attention.

Yet once the Fed chairman completes his prepared remarks, hardly anyone pays any heed to the subsequent exchange of questions and answers between Greenspan and the members of the Congressional committee that summoned him. The sessions can go on lot hours, yet they rarely produce news--or much enlightenment.

You would think that with the world's most powerful banker held captive be fore them, the senators and representatives would engage Greenspan in a thoughtful discussion on the top economic issues of the day. Instead, the inquisitors are more interested in pursuing their own political agendas. They may be soliciting his support for--or opposition to--specific legislation, grandstanding for the audiences back home about a major local concern, or trying to bait him into an embarrassing political position.

As a result, the taciturn Greenspan does his best to be even more circumspect than usual in his responses. And the primary contribution from the lawmakers, having squandered the opportunity for lively debate, is entertainment for those in attendance and the few folks who watch the proceedings on C-SPAN.

For Greenspan, the questioning is annoying at times but largely harmless. Few members of Congress rail against his policies, and the Republicans who now wield power are friendly, including Senate Banking Committee Chairman Richard Shelby of Alabama and House Financial Services Chairman Michael Oxley of Ohio.

And even those who hector him the most can't compare in antagonism to legendary House Banking Committee Chairman Henry B. Gonzalez of Texas, a Democratic populist who tormented Greenspan during the 1980s and 1990s. Not only did Gonzalez oppose Fed monetary policies, but he also made life miserable for Greenspan by attacking the Fed as an institution, from its lack of minorities in high positions and lavish spending to the way it selected regional presidents. Gonzalez' threat to pass legislation to rein in the Fed was never taken seriously, but his vows to cut the Fed budget got Greenspan's attention and forced him to do all he could to pacify the House Chairman. Greenspan used to complain that Gonzalez was the biggest thorn in his side. Needless to say, Greenspan...