Bernanke Reappointment: Why? by Pete

August 31, 2009

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Mortgage and Banking Expert for the Victoria Taft blog, “Pete,” on the reappointment of Ben Bernanke to the Fed and how it’s riled a few on the street.

Given Ben Bernanke’s past association with the Federal Reserve Board during Greenspan era easy money period preceding the collapse of the capital markets and his role in TARP and other government bail out initiatives, was Obama correct in reappointing Bernanke based on the tough decisions he has made?

Pesident Barack Obama announced on August 25, that he would re-nominate of Ben Bernanke for a second term as chairman of the Federal Reserve. Since then this reappointment has received mixed reviews from lawmakers and political analysts. (Here)

Barney Frank, for example, views Bernanke’s response to the economic crisis as “wise” and “appropriate.” And stated, “He has acted to provide needed liquidity to the economy and has demonstrated that he is fully ready to reverse course when economic conditions dictate. President Obama’s decision to reappoint him now is one more example of his providing leadership the country and the world needs, as well as addressing the economic situation he inherited. “

Sen. Richard Shelby, R-Ala, was less complimentary criticizing him for making piecemeal or “ad hoc” decisions during the financial market crisis, stating “Consideration of Chairman Bernanke’s nomination to serve a second term raises several important issues. The Banking Committee should carefully examine the impact of the Fed’s failures as a bank regulator, how such failures contributed to the financial crisis, …”

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