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Alan Greenspan, the Federal Reserve chairman whose tenure reshaped the central bank's relationship with financial markets, has died at the age of 100.
His legacy is defined less by any single policy rate than by a structural shift he introduced: the idea that the Fed would act to cushion markets from severe losses, a posture that critics say opened the door to distortions the institution is still working to close.
The 'Greenspan Put': A Doctrine That Outlived Its Author The term "Greenspan put" — borrowed from the options market, where a put contract limits downside — describes the implicit guarantee that took hold during Greenspan's time at the Fed: that policymakers would step in when asset prices fell sharply enough to threaten the broader economy.
For portfolio managers, the concept was not merely academic. It altered risk calibration across asset classes, encouraging the assumption that a Fed backstop would truncate the left tail of return distributions.
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