Greenspan Put

The market belief, named after former Federal Reserve Chairman Alan Greenspan, that the Fed would intervene to support financial markets during sharp declines by cutting interest rates or providing liquidity. The concept emerged after the Fed's aggressive response to the 1987 crash and the 1998 LTCM crisis. The term has since evolved into the broader "Fed Put," reflecting the expectation -- critics say moral hazard -- that central banks will always backstop markets.