Business Notes Federal Reserve O.K.,

There was never much doubt that George Bush would reappoint Federal Reserve Chairman Alan Greenspan to a second four-year term. The only question was when. Last week, just six hours after he hinted he was in no hurry to do it, Bush renominated the Fed chief. Said the President: "The respect that Alan Greenspan has in the world and in this country, particularly in financial marketplaces, is unparalleled."

Bush, who rarely does anything until the last moment, had been stalling partly to keep pressure on the Fed to lower interest rates and thereby give the nascent recovery a gentle nudge. But the delay was starting to send shivers through financial markets, which have applauded Greenspan's anti- inflationary policies and dread the idea of an unknown replacement. Even so, Bush's subtle hint may have worked. In early July, Greenspan scored a point for economic stimulation by prevailing over anti-inflation zealots on the Fed who wanted to lower the targets for growth in the U.S. money supply.