"The era of Chairman Greenspan will always be known as one of phenomenal economic growth, high productivity, and unprecedented innovation and opportunity for all our citizens," Bush said at a ceremony in the White House East Room.
Greenspan's award comes as he gets ready to retire on January 31 after 18 years at the helm of the Fed. Among those attending the Medal of Freedom ceremony was Bush's nominee to replace Greenspan, White House economist Ben Bernanke.
Bush joked that before Greenspan made economics his lifelong passion, he was an aspiring jazz musician who showed his mathematical side by helping fellow band members fill out their tax forms.
The medal was established in 1963 and is awarded for contributions to the security or national interests of the United States, world peace, or cultural or other significant endeavours.