Greenspan Set Carney on Path to Political Stardom

WHEN ALAN GREENSPAN was nominated for a fourth term as Federal Reserve head in 2000, Bill Clinton had some fun.

- Daniel Moss Bloomberg

The internet boom was in full swing, and the then US president cracked that he thought about taking "Alan.com" public.

The joke acknowledged the expanding footprint of the Fed in economic and political life. It also nodded to the cult of personality that accrued to the chair — and the new emphasis that monetary agencies were placing on messaging and the ability to shape perceptions about the path of jobs and inflation. The trend has grown since, as central banks become more powerful, and those who lead them acquire still greater influence. That transformation goes some way to explaining Mark Carney's elevation to prime minister of Canada.

Carney ran in Monday's election as an antidote to US President Donald Trump, who made a habit of belittling his predecessor, Justin Trudeau. The White House imposed steep tariffs on Canada and refers to the country as the 51st American state, a derision which saw a revival of support for the beleaguered ruling party. But it would be a mistake to see Carney as just contra-Trump.