Obama plans to keep Bernanke at Fed

AP source: Obama plans to keep Bernanke as chairman of Fed to continue economic recovery

OAK BLUFFS, Mass. (AP) -- President Barack Obama plans to reappoint Ben Bernanke to a second term as chairman of the Federal Reserve, a position from which he guided the economy away from its worst recession since the 1930s and, the White House hopes, toward an economic recovery critical to its legacy.

Widely credited with taking aggressive action to avert an economic catastrophe after the financial meltdown last year, Bernanke will be nominated for another term as the helm of the central bank on Tuesday. Obama plans to make the announcement on Martha's Vineyard, the Massachusetts island where he is vacationing for the week with his family.

Bernanke is expected to be at his side, said a senior administration official who discussed the nomination only on condition of anonymity because the news was not yet public.

By announcing he wants Bernanke for another term and not changing horses in midstream, Obama removes a sense of uncertainty on Wall Street.

Bernanke masterminded what is now seen as a successful strategy to lift the economy out of recession, unlock credit and stabilize financial markets, in part by using unconventional and unprecedented lending programs. But he's not without his detractors, and the top Democrat on the Senate banking committee warned of a thorough hearing before Bernanke would take his post for a second time.

Many on Wall Street and in academic circles believe that Bernanke would be the best choice to lead the country into a sustainable recovery and would be in the best position to figure out when and how to reel in the trillions of dollars pumped into the economy to battle the crisis.

"Wall Street can rest a little easier now," said Chris Rupkey, an economist at the Bank of Tokyo-Mitsubishi. "Having a new chairman come in at this late date would put the Fed-engineered solution to both the recovery and the exit strategy at risk."

To read the original article click here

Other articles of interest...
Critically Under-Capitalized Banks Direct Result of "Wonderful Chain of Stupidity"
Please consider In New Phase of Crisis, Securities Sink Banks.
Attack on Obama riles Beck's advertisers
...part of the fallout from calling President Barack Obama a racist.
Fannie, Freddie shares soar on huge volume
Shares of government-controlled mortgage finance companies Fannie Mae and Freddie Mac zoomed higher