Alan Greenspan, former chairman of the Federal Reserve, passed away in June 2026 at the age of 100. As an influential figure in modern financial markets, Greenspan established core principles during his tenure: the 'Greenspan put' — the notion that the central bank would intervene to support markets during downturns — along with a communication strategy that used subtle language to guide expectations, and a systematic bailout paradigm. These rules dominated Fed policymaking for nearly two decades.
However, after the 2008 global financial crisis, Greenspan's legacy faced increasing scrutiny. Critics argue that his policies of low interest rates and deregulation contributed to the conditions that led to the crisis. Now, current Fed Chairman Kevin Walsh is conducting a comprehensive review of the central bank's operational framework. He is downplaying the importance of forward guidance, recalibrating communication tactics, and rethinking the underlying policy logic. This shift signals the definitive end of an old paradigm that relied on an unconditional central bank safety net.