Aug 27 2009
Bernanke Renominated to Fed
President Obama nominated Ben Bernanke for a second term as Federal Reserve chairman this week. Bernanke’s term will expire Jan. 31. His nomination is subject to Senate confirmation this fall.
Wall Street is happy that Bernanke will lead the Fed four more years. Stocks have been slightly higher than the announcement. Obama said continuity was vital considering the economy is still in a precarious state. Therefore, changing a key member of the economic team wasn’t a wise idea.
Liberals won’t likely be pleased that the Republican Bernanke, originally appointed by George W. Bush to replace longtime Fed chairman Alan Greenspan, will remain in power. Senate Banking Committee chairman Chris Dodd voiced some concerns about Bernanke’s slow response to the American economic crisis but praised later efforts.
Bernanke, a former Princeton professor who has thoroughly studied the Great Depression, is expected to be confirmed without much trouble. He’ll face some tough questioning during the confirmation process but there isn’t an organized opposition.
