James Pethokoukis

Perry vs. Romney on Ben Bernanke

August 16, 2011

Gov. Rick Perry’s tough comments on Federal Reserve Chairman Ben Bernanke are another sign that the Fed and monetary policy will be big topics in the Republican primaries and the general election. There is certainly a stark difference between how Perry talks about the Fed, and how Mitt Romney does. First, here is Perry from yesterday:

Not a (Peter) Diamond in the rough

June 6, 2011

The problem with the Federal Reserve is not that an “activist Keynesian” — in the words of the Club for Growth — like Peter Diamond can be appointed to such a powerful economic policymaking body. His views are, unfortunately, well within the mainstream of economic policymaking. The problem is that Diamond and the other Fed members really don’t matter. As one former Fed member said to me, “If you see someone from the Fed talking on TV and he’s doesn’t have a beard, feel free to ignore him.”

Bernanke probably agrees with the anti-QE2 letter

November 15, 2010

A bunch of right-of-center investors, economists and journalists (under the banner of the great e21 group) have signed an open letter to Ben Bernanke:

Bernanke wins confirmation 70-30

January 28, 2010

Almost twice as many no votes as Volcker who got 16 back in 1983. BB will have to tough it out against a Congress that wants to push the Fed around.  Barney Frank, for instance, wants to kick the regional bank president off the FOMC since they are not confirmed by Senate — and are often to hawkish for his tastes.

Hello, they must be going

January 27, 2010

David Goldman lays it all out:

Drastic steps are required to restore credibility and confidence.

1) Ben Bernanke should withdraw from consideration for a second term as Fed Chairman. President Obama should appoint former Fed Chairman Paul Volcker in his place. If Volcker, who is 82 years old, feels unable to accept the nomination for a full term, he should serve as Interim Chairman and head a search committee including bipartisan Congressional representation to find a permanent successor. If Bernanke insists on pursuing a second term, the Senate should vote him out.

More on the Bernanke Meltdown

January 25, 2010

Intrade says Beranke is lock, but maybe not, according to the always insightful Dan Clifton of Strategas Research:

The case against Bernanke

January 25, 2010

From AEI’s Desmond Lachman:

Bernanke’s sole claim for a second term rests on the masterful and bold way in which he prevented the U.S. economy from falling into the abyss following the Lehman debacle in September 2008. However, this begs the question as to who led us to the abyss in the first place. Throughout 2006, when the worst of the sub-prime lending was taking place, Bernanke was conspicuously silent in sounding the alarm about the dangers of the U.S. housing bubble. Similarly, he was painfully slow in recognizing how severe the fallout from the bursting of the housing bubble would be and he displayed the poorest of judgments in allowing Lehman to fail in as disorderly manner as it did.

Bernanke Confirmation Watch

January 22, 2010

I would not say his support is collapsing, but it is eroding. He is going to need some GOP help to make it. Keep an eye on the “yes” votes from the Banking Commitee to see if they start wavering and how much Obama supports him in the next few days. BB is on the wrong side of the populist wave.

Bernanke could be latest victim of Massachusetts Miracle

January 22, 2010

It seems that support for the renomination of Ben Bernanke is falling by the day, says ABC News. Liberals in Congress want him gone. Then again, they want pretty much the whole Obama economic team gone. But Geithner and Summers aren’t up for a Senate vote. Bernanke is. And if Dems start bailing, don’t expect Republicans to save him. No politician in America gains anything by voting for Bernanke. A “no” vote is a free vote. Wall Street still loves him, though. Geithner, too.

The Fed’s new term-deposit tool is politically risky

December 29, 2009

OK, so Ben Bernanke has cooked up a new idea to remove liquidity from the financial system,  a term-deposit program that would allow banks to park cash at the Fed. It would be like a CD of various maturities for banks. But there are some political risks here for Bernanke & Co. given the current high level of anti-Fed sentiment in Washington and in the rest of the country. First, the Fed could be accused of contributing to the freeze in small-biz lending by giving banks something else to do with their money.