The reappointment of Ben Bernanke to a second term as Chairman of the Federal Reserve couldn’t have come at a better time. Late August in the stock market is not always the most exciting place to be even in normal times.
His reappointment will have a calming effect on the market…at least for a while. Fed policy will be a lot more predictable than would have been the case if the President had changed horses.
It was also the right decision. The guy has done an excellent job of guiding the economy back from the brink of disaster…in creative and unprecedented ways.
· He is a student of the first Depression. He knew the mistakes that were made 75 years ago and what needed to be done…and he aggressively did it.
· In his second term, he will be confronting a crisis that extends far beyond the banking system and monetary policy…and into ethics and risk-management standards of our major financial companies. That’s euphemistic for more regulations!
Bold and out-of-the-box thinking got him his reappointment. Bold and out-of the-box thinking will be required to deal with the enormous problems we still face.
If he succeeds, he will become one of the most influential Federal Reserve Chairmen in history. More importantly, he will help to improve economic conditions for a long time.
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