Will Bernanke be reappointed?

August 21, 2009

  Policy-makers, academics and analysts from around the world are gathered at a remote lodge in Wyoming’s Jackson Hole this week to reflect on the financial crisis.

    One of the topics of conversation on the sidelines of the conference is whether President Barack Obama will reappoint the chairman of the U.S. central bank — Ben Bernanke — whose term ends early next year.

    

    Two veteran Fed-watchers weigh in: 

    

GLENN HUBBARD, DEAN OF COLUMBIA’S GRADUATE SCHOOL OF BUSINESS

     “I think the bar for replacing Bernanke would have to be very high, in the middle of the crisis he has shown determination to take very bold action and his own knowledge has been very specific and helpful in the crisis.”

    

MICKEY LEVY, CHIEF ECONOMIST, BANK OF AMERICA

   “From the Obama administration’s point of view, he has done a lot right…financial markets have stabilized, in part due to the very aggressive actions by the Fed. I do think he’ll be renominated and then once that occurs he faces just enormous challenges that go way beyond the traditional monetary policy discussions about inflation and economic growth.”

11 comments

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I am a big supporter and fan of Bernanke. Lay the blame for most of the bungles during the crisis in front of that idiot from GS, Henry Paulson. Without Bernanke I’m pretty sure we would have been in a depression by now. I hope he gets re-appointed. He job was extremely tough the last year and might even be harder over the next couple of years.

Posted by blackbean | Report as abusive

He should be reappointed. He has done an excellent job cleaning up the mess left by his predecessor. He has shown a willingness to take action, something Greenspan was reluctant to do.
Even with all of his accomplishments, I still feel Obama will replace him…after all, Obama does want change.
Potential replacement…how about the current sec’y of the treasury, a close ally.
Hopefully, tho, Obama will be smart enough to resist athe urge to change and leave Bernakae in charge.

Posted by Bill Rustic | Report as abusive

Bernanke presided over much of the situation we’re in and has followed basically lockstep with the anti-regulation policies of Greenspan – opposing transparency and accounting for much of the taxpayer money that has been funneled in to banks.

Of course lobbyists for the elite financial institutions will be for the guy – they continue to give themselves enormous executive bonuses and refuse to open up the credit flow that would truly assist in real economic revovery… All on his watch.

Posted by bill | Report as abusive

Anyone is free to complain about the job Mr. Bernanke has done, but anyone who wants to be taken seriously had better be ready to suggest someone who could do better and have strong, sound arguments to back up such a suggestion.

Posted by Rob Mayer | Report as abusive

I say put Ron Paul in charge of the fed!

Posted by jason | Report as abusive

Gotta give him an A for effort, especially after the dud Greenspan. I think Obama will keep the status-quo because the problems are not over & he’s not one to change direction in the middle of the crisis.

Posted by Atheistno1 | Report as abusive

Mr Bernanke has kept a very steady hand at the Federal Reserve. There is no reason to replace him. President Obama recognises talent and is likely to give him the thumbs up. One should not forget Greenspan’s talents and contributions for he too was financially astute.It is very easy to criticise but one should realise the extreme pressures and the complexity of issues.

At some point, Bernanke is going to have to come to grips with the U.S. debt bomb. Since the Clinton Administration balanced the budget and produced a surplus, subsequent administrations have bankrupted the country. The only way to deal with the burdensome debt obligations is by monetizing debt through some pretty serious inflation. The U.S. dollar needs to drop like a rock and reflect the true economic circumstances of the country in world currency markets. Individual Americans need to come to grips with the economic status quo, and put there shoulder to personal financial obligations. One can blame the U.S. Government for the debt crisis, but individual Americans by and large are financially irresponsible. If this country, and its citizens and Bernanke are not prepared to deal with U.S. financial excess, Americans should become fluent in Chinese.

Posted by James | Report as abusive

Ron Paul seems to have a good fix on Bernanke. He espouses the idea of a real monetary system based on real assets rather than Bernanke’s fixation on the “bag full od air” system in place now. He may be the best deal we have right now,, but I’d keep an eye out to better deal this fellow. Two months before I lost my job in this lousy economy, GW Bush said the economy was “vibrant”. I knew better but I wonder if Bernanke had George’s ear on that play.

Posted by RH Pyle | Report as abusive

Mr. Bernanke has done well handling our recent economic problems, arguably because he was a student of the Great Depression and the monetary and political causes for it. Considering many of the questions about his involvement with Bank of America being forced into the Merrill Lynch deal, as well as his reluctance to give up any Federal Reserve authority/independence and allow political control /”regulation” by the administration, I suspect that President Obama will appoint someone else more likely to allow politicization of the Fed, giving the administration more control over monetary policy.

Posted by Fuzmaniac | Report as abusive

There is no way that the President should replace Bernanke unless a detailed explanation is given to the American people as to what has happened in the recent past. Personally I think he needs to be dismissed immediately. I think politicians underestimate just how incredibly suspicious many Americans are of the federal government’s motives as of late. There has to be a lot of careful, logical explanation or the proverbial you know what is going to hit the fan. There is a deep-seated anger growing and I think it might get out of control.

Posted by Peter Cook | Report as abusive