White House Weighs Bernanke's Future

By: Daniel Carty
Topics: Federal Reserve

(AP Photo/Susan Walsh)

With Federal Reserve Chairman Ben Bernanke's term expiring in January, the White House faces a big decision on whether to reappoint him.

Bernanke has taken hits among lawmakers for his handling of the federal bailout of the financial system, but he's enjoying solid support on Wall Street, according to a Wall Street Journal report Thursday ($).

Forty-three of 46 private sector economists support Bernanke's reappointment, according to a Journal poll, though even some supporters noted his decisions have not been flawless.

Bernanke proponents cite his bipartisan efforts to lift the country out of a severe financial crisis as well as a desire not to "change horses midstream." But his reappointment will require Senate confirmation, where he's drawm criticism from key figures on both sides of the aisle.

So as President Obama considers Bernanke's future, the Journal looked at some possible alternatives:

Lawrence Summers, director of the White House's National Economic Council - Serving as Mr. Obama's top economic adviser, Summers is a talented economic thinker. But, as the Journal notes, "his blunt, domineering style makes some bristle and could be greeted with trepidation at the Fed."

As Nicholas Perna of Perna Associates described his support of Bernanke to the Journal: "Stated differently: Don't appoint Summers."

Janet Yellen, president of the San Francisco Federal Reserve Bank - The journal notes her strong academic credentials and experience serving as an adviser to President Clinton and as a Fed governor under Alan Greenspan. But her concern about inflation being "too low, not too high, over the next several years" may not go over well on Wall Street.

Other candidates cited in the Journal report – Christina Romer, chairman of Mr. Obama's Council of Economic Advisers; and Roger Ferguson and Alan Blinder, both former Fed vice chairmen.

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by Lao_Mai July 10, 2009 2:26 AM EDT: End the Fed. Return the power of printing money to the Congress, where the Constitution had put it.

Each Dollar they print represents debt, rather than wealth.

"If Congress has the right to issue paper money, it was given to them to be used ... and not to be delegated to individuals or corporations."

-- President Andrew Jackson, Vetoed Bank Bill of 1836; Reply to this comment


by stn_sage July 9, 2009 9:10 PM EDT: Another poster has said that he believes, '...he is working to repair the economy.' NOTHING, could be further from the truth!

Mr. Bernanke was put there by former president Bush, to facilitate the looting of the government, to give to the private banking system and Wall Street! THAT, is his PRIMARY purpose!

And, to this point in time, he has done an admirable job of it!

By Mr. Obama's actions, we shall see if he's really serious about restoring government and the trust of the public in same!

IF he is, he'll READILY appoint someone else, without reservation!

IF he's NOT, he'll reappoint this STOOGE for another term!

Either way, we---the public---will find out all we need to know about Mr. Obama!; Reply to this comment


by Joe_NY_15 July 9, 2009 4:20 PM EDT: I'm betting they can him, and put their own operative in place, so they can continue with the fleecing of America; Reply to this comment


by jimintx09 July 9, 2009 3:56 PM EDT: I think the idea of not reappointing Bernanke is ludicrous. I'd put money on the notion most Congressmen and Senators make some public display to avert constituent criticism over spending. As if they didn't have a say. But turning him out after what he's accomplished borders on the perverse.; Reply to this comment