Bernanke’s back! CIG looks at what this means.

Sept. 13, 2009 - PRLog -- Reappointing Ben Bernanke as chairman of the Federal Reserve, at face value seems to be the only and right choice for the President to have made. He could have waited until closer to the end of the year, but his early reappointment categorically declares that there was no one else in real contention for this vital post.


Larry Summers, who was the only other contender mentioned for the job, never specialized in monetary policy and serves the Obama government better as an economic consultant. Bernanke, despite his shortcomings, is the best contender for Fed chief, according to sources known to CIG.


Fortunately, the chairmanship of the Fed has once again managed to steer clear of the political quagmire. Obama, a Democrat, keeps Bernanke, a Republican, just as Democrat Bill Clinton kept Republican Alan Greenspan, a tradition that goes back to the Reagan administration, CIG has noted.


In his reappointment speech, Obama was right when he said that Bernanke will be remembered for his imaginative "outside-the-box thinking." Bernanke saw that stemming the catastrophe was not just an issue of lowering interest rates. Steps had to be taken to develop liquidity and decrease record-high risk premiums. Backing up bank deposits and especially money funds was an essential first step, CIG realizes, but he also employed new lending facilities that sprung from his studies of the Great Depression.

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