Part 12/13:
He points out that Fed Chair Jay Powell, being a lawyer rather than an economist, has prioritized transparency and communication, holding regular press conferences to foster trust. His approach contrasts with Greenspan’s opaque style, and his tenure is characterized by efforts to repair the Fed’s image after the 2008 crisis.
Leeman critiques Greenspan’s permissive stance during the credit boom, which he believes contributed to the buildup of risky leverage and ultimately the 2008 financial meltdown. He emphasizes that the Fed’s responses to systemic risks, especially involving derivatives and shadow banking, were inadequate—and that Greenspan's reliance on market self-regulation played a role in creating vulnerabilities.