Kevin Warsh faces the daunting task of leading the Federal Reserve as its new chair, with Alan Greenspan's legacy casting a long shadow over monetary policy decisions. The Financial Times analysis suggests that Warsh's success will largely depend on distinguishing which of Greenspan's approaches remain relevant in today's economic environment.

Greenspan's tenure spanned 18 years and included major economic transformations, from the dot-com boom to the 2008 financial crisis. His policy framework, often called the 'Greenspan put,' influenced market expectations for decades. However, critics argue his low-interest-rate policies may have contributed to asset bubbles that eventually burst.

The transition comes at a critical time for the Fed, as central bankers grapple with post-pandemic inflation, evolving labor markets, and the challenge of unwinding unprecedented monetary stimulus. Warsh must navigate these complexities while establishing his own credibility with markets and policymakers.

Market participants will watch closely how Warsh balances continuity with change, particularly given Greenspan's mixed legacy of stabilizing markets while potentially enabling excessive risk-taking.