Bernanke To Fill Greenspan's Shoes

Bush's Federal Reserve Nominee Pledges To Continue Policies

(CBS/AP)  Ben Bernanke, a plain-speaking former economics professor, was chosen Monday by President Bush to be the next chairman of the Federal Reserve, the most influential economic policy job in the world.

If approved by the Senate, Bernanke would succeed Alan Greenspan, who has spent 18 years at the helm and is expected to step down Jan. 31. Bush called Greenspan a "legend," and Bernanke promised to continue the chairman's policies.

"Ben has done path-breaking work in the field of monetary policy, taught advanced economics at some of our top universities and served with distinction on the Fed's Board of Governors," said Mr. Bush, who was flanked by Bernanke and Greenspan during a brief White House ceremony. "He's earned a reputation for intellectual rigor and integrity. He commands deep respect in the global financial community."

Greenspan called Mr. Bush's choice "a distinguished appointment. Ben comes with superb academic credentials and important insights into the ways our economy functions."

It was the third time in as many years that Mr. Bush has turned to the 51-year-old Bernanke for a sensitive economic post. CBS News correspondent Anthony Mason reports that in what many saw as an audition for the job, the president named him to the Fed board in 2002, then made him chairman of the president's Council of Economic Advisers earlier this year (video).

The nomination comes at a difficult time for Mr. Bush. His approval ratings are sagging, his choice of Harriet Miers for the Supreme Court is under attack, and his top political adviser — Karl Rove — is a central figure in the investigation of who leaked the name of an undercover CIA officer.

The initial reaction to Bernanke was positive. Academics, Republican and Democratic lawmakers, economists and other experts said Bernanke, a leading thinker on monetary policy, has impeccable academic credentials for the Fed post.

On Wall Street, the Dow Jones industrial average soared nearly 170 points, the best one-day showing in six months.

Bernanke (pronounced ber-NANK-ee) acknowledged that he has big shows to fill, saying Greenspan "has set the standard for excellence in economic policy-making."

If he is approved to a four-year term as Fed chairman, Bernanke said, his first priority would be "to maintain continuity" with the policies and strategies during the Greenspan era. He pledged to do all he could to ensure "the continued prosperity and stability of the American economy."