Greenspan defends Fed's record over market failing

US - Alan Greenspan, the chairman of the Federal Reserve, staunchly defended himself on Friday against mounting criticism that he should have done more to prevent the stock market bubble of the 1990s.

The chairman of the US central bank said suggestions that he should have raised interest rates to deflate rising stock prices in the late 1990s were misplaced.

"The notion that a well-timed incremental tightening could have been calibrated to prevent the late 1990s bubble is almost surely an illus