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Bernanke to Be Nominated for Second Fed Term by Obama

Discussion in 'Political Zone' started by TheRat, Aug 24, 2009.

  1. TheRat

    TheRat The Silly Willy

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    Bernanke to Be Nominated for Second Fed Term by Obama

    Aug. 24 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke, who led the biggest expansion of the central bank’s power in its 95-year history to avert a second Great Depression, will be nominated to a second term by President Barack Obama, according to an administration official.
    Obama will make the announcement tomorrow on Martha’s Vineyard, Massachusetts, where he is vacationing with his family, and Bernanke is expected to join him, said the official, who spoke on the condition of anonymity. The nomination requires Senate approval. Bernanke’s four-year term as chairman expires Jan. 31.


    Bernanke, 55, slashed the main interest rate almost to zero, pumped $1 trillion into the banking system and led rescues of Bear Stearns Cos. and American International Group Inc. He now must guide the world’s largest economy back to growth and reduce unemployment approaching 10 percent while shrinking the Fed’s balance sheet to prevent a surge in inflation.


    “He did whatever was needed to be done to actually prevent a depression, and he’ll do whatever needs to be done in terms of preventing inflation,” Frederic Mishkin, a former Fed governor and research collaborator of Bernanke’s who is now a Columbia University professor, said in an interview with Bloomberg Television last week in Jackson Hole, Wyoming.

    Obama, who made the decision before he left for vacation yesterday, admired Bernanke’s leadership during the financial crisis and felt that he is still needed at the helm of the central bank as the economy recovers, said the administration official. He said Obama’s decision was based on what he described as Bernanke’s bold and creative actions to pull the financial system back from the brink.

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aIreCBeUHkBk

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