OAK BLUFFS, Mass. — 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.
Yes, another Republican will receive appointment by a Democratic President. The last Democrat appointed to lead the Fed was Volcker in 1979. When he came up for reappointment, although he was considered to have done a good job by most in ending inflation by creating a deep recession in the early 80s (a great Republican policy), Reagan instead appointed Greenspan, the right wing ideologue and promter of no regulation, a policy that eventually led us into the Great Recession. Greenspan, of course, was appointed by Clinton. Yes, there were no Democrat economists like the future Nobel Prize winners Krugman or Stiglitz, or just a good economist like Alice Rivlin who served on the Fed. And then Bush appointed Greenspan and Bernanke. Bernanke missed the bubbles that led to the recession, although he did an okay job cleaning up the mess. And that's good enough to pass over all Democrats.
More, after the fold
In remarks prepared for the announcement, Obama praised Bernanke for leading the country through the meltdown and, with his expertise on the Great Depression, helping to prevent a crisis rivaling that of the 1930s.
"Ben approached a financial system on the verge of collapse with calm and wisdom, with bold action and outside-the-box thinking that has helped put the brakes on our economic free-fall," Obama said in prepared remarks obtained by the AP.
HufPo
Of course, Ben did nothing to stop it falling into recession, did he?
So, from 1987 through 2106 2013, the Fed will be led by Republicans. Not change I believe in. Almost 26 years. Even Summers, the neo-liberal economist, would be better. [Clarification. I may be worng about Summers being better. Many have pointed out that Summers is worse. I'm not sure, but I prefer neither Summers nor Bernanke. Stiglitz would be good. There are moderate Dems on the Fed who could do it. I want a Democrat for once]
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.
snip
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.
snip
"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."
HufPo
The Fed has so much power, and now Obama has reappointed a Republican to continue to lead it through 2016. I do not expect pro-employment, pro-worker policies. But "Wall Street can rest a little easier now." Aren't you glad?
What about Main Street? What about working people? They will get no rest as they look for work for less pay.
Update I: Correction. Reagan re-appointed Volker after Volker created the recession that ended much inflation. He appoined Greenspan in about 1987.
Update II: Bernanke Did Help Get Us Into This Mess
Dean Baker:
Give the Washington Post credit, in its article on Ben Bernanke's reappointment as Fed chair, it did point out that Mr. Bernanke bears considerably blame for getting us into this economic crisis in the first place. While all the other reporting emphasized his efforts to prevent a financial collapse over the last year, only the Post noted that Bernanke consistently ignored the risks building up as a result of the growth of the housing bubble.
While Bernanke bears less responsibility than Greenspan, he was a Fed governor from 2002 to 2006, and then head of President Bush' Council of Economic Advisors, until he took over as Fed chairman in January of 2006. There were few people better positioned than Bernanke to head off the growth of the housing bubble.