US President Barack Obama announced Tuesday morning to appoint Ben Bernanke as the Federal Reserve's Chairman for a second term, electing to maintain continuity in the nation's most powerful economic policymaking job in a time of crisis.
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Photo dated on May 5, 2009 shows US Federal Reserve's Chairman Ben Bernanke testifies on Capitol Hill in Washington. US President Barack Obama announced Tuesday morning to appoint Ben Bernanke as the Federal Reserve's Chairman for a second term, electing to maintain continuity in the nation's most powerful economic policymaking job in a time of crisis. [Zhang Yan/Xinhua] |
During a break from his vacation on Martha's Vineyard in Massachusetts, Obama made the announcement and credited Bernanke from aggressively pulling the economy from the brink. He said the 55-year-old Bernanke tackled the crisis "with bold action and outside-the-box thinking" that helped limit the damage.
Bernanke's renomination requires Senate confirmation. If the Senate confirms him, Bernanke would serve a second four-year term when his current one ends on Jan. 31. He would, in his second term, begin the difficult task of unwinding the Fed's extensive interventions in the economy.
Obama said that "the actions we have taken to stabilize our financial system, repair our credit markets, restructure our auto industry, and pass a recovery package have all been steps of necessity, not choice."
"They have faced plenty of critics, some of whom argued that we should stay the course or do nothing at all." he said. But taken together, this "bold, persistent experimentation" has brought our economy back from the brink.
Obama is counting on Bernanke to nurse the economy back to health at a time when unemployment, home foreclosures and bank failures are still mounting. "We are a long way away from a completely healthy financial system and a full economic recovery." he said.
Bernanke thanked the President' support for the independent role of the Federal Reserve.
"We have been bold or deliberate as circumstances demanded, but our objective remains constant: to restore a more stable economic and financial environment in which opportunity can again flourish, and in which Americans' hard work and creativity can receive their proper rewards," Bernanke said.
Some critics say Bernanke was too slow to recognize the severity of the crisis. Others worry the Fed's measure for flooding the financial system with too much money could cause inflation later.
Despite the critics, the market welcomed the Fed chief's reappointment. US stock index futures were slightly higher on Tuesday on the news.
Economists say Bernanke's status makes Fed policy a little more predictable.
Analysts say now investors around the world are more focused on whether a global economic recovery is really underway.
(Xinhua News Agency August 26, 2009)
