Topic Details (Notes format)

Greenspan Put

Subject: Economy

Description

The Greenspan Put refers to the perceived policy of the U.S. Federal Reserve, under Alan Greenspan, to lower interest rates and support asset prices during market downturns, effectively “putting a floor” under markets. Example: During a market slump, investors believed the Fed would intervene to support prices, a notion dubbed the Greenspan Put.

Summary

The Greenspan Put describes the Fed’s tendency to support markets during downturns.