President Obama has reappointed Ben Bernanke to the top post at the Federal Reserve. This ends months of speculation over whether Bernanke would keep the job he held through the harshest part of the financial crisis, or if the President would appoint heir-apparent Larry Summers to the Fed. Former Treasury Secretary under Clinton, Summers was positioning himself for the Fed chairmanship during the President’s succession period. But ultimately, the President decided to go with the team that “carried” us through the worst of the financial crisis.
Bernanke, first appointed by President Bush, will face confirmation hearings in the Senate that could reveal some things still unknown about what went on inside the Fed during the bailout periods. But the President has confidence in his choice, yet another in a series of choices that continue in the policies of his predecessor:
As an expert on the causes of the Great Depression, I’m sure Ben never imagined that he would be part of a team responsible for preventing another. But because of his background, his temperament, his courage, and his creativity, that’s exactly what he has helped to achieve.
Chairman of the Senate Banking Committee Chris Dodd has already endorsed the choice. Bernanke is likely to get reappointed in Sotomayor-like fashion.