As the momentum for economic recovery in the United States has become increasingly clear that the US Federal Reserve Chairman Ben Bernanke from January 31, expiry of the time also diminished. In accordance with established practice, the President will usually make it clear at this time, to decide whether to remain in it. For example, in July 1991, President Bush directly to Congress nominations that Greenspan continue to act as a responsible position. In doing so, the most fundamental considerations or by maintaining the continuity of monetary policies to stabilize the market confidence. In particular, is currently in the United States economic recovery of subtle turning to spot replacement coach, for stock market and other financial market stabilization clearly disadvantageous. Despite the recent two months, Obama repeatedly praised Ben Bernanke "in exceptional circumstances is better play the role," but he is not willing to nominate Ben Bernanke remain clear attitude on the question.
For the evaluation of Ben Bernanke, despite his many critics voice. But overall, according to Reuters, the Wall Street Journal recently in several surveys, 70%-80% of financial institution economist will welcome Ben Bernanke to remain, and these people represent the voice of the it market, this cannot be the ultimate choice is not Obama; in addition, including Krugman, Ruby, numerous high cards, also the economists clear support Ben Bernanke. While the evidence is entirely stood aside from Ben Bernanke the Fed over the past 30 years, Paul Volcker, Greenspan · also successfully won a second term.
Fair to say that the failure to foresee subprime mortgage crisis attributed solely to Ben Bernanke is unreasonable. Ben Bernanke's problem is that the crisis in the initial phase, his low-key personality makes himself repeatedly was too strong for former Secretary of Treasury Paulson led by the nose, in many issues, especially if you want to save Lehman Brothers, no time off that attitude. But with Bush and Paulson fade out political stage, Ben Bernanke suddenly burst out of the wise, it can be said that from January 2009 onwards, the Fed is in a truly entered the era of Ben Bernanke.
From a complete economic cycle perspective, as Ben Bernanke the Fed helm also has its own limitations or doubtful. As the authority of the great depression, he helps United States economy out of the crisis may be the obvious choice, but for how to carefully balance economic prosperity and the relationship between inflation expectations, Ben Bernanke and compelling experience, he's inflation targeting just stay on the verbal. At the same time, despite efforts to let the market believe that Ben Bernanke, the Fed's exit strategy is sufficient to guarantee a relaxed monetary policy in the future will not lead to significant inflation, but in 2008, the fed in curbing inflation as demonstrated capacity and not particularly reassuring.
The author believes that Obama is not clear whether support Ben Bernanke remain, reflecting its own interests. If Ben Bernanke for re-election, his second term of Office from 2010-2014 longitudinal cross, 2012 is the next United States presidential election years. This cannot but make people remember a thing of the past: in 1992, the United States economy is in recession, the same old Bush has repeatedly hinted that want the Federal Reserve cut interest rates further in terms of steps in a larger, more frequently, however expect a deaf ear to the Alan Greenspan. Final due to the economic downturn, the elder Bush lost the general election. Many years after he had been taken, "I let Greenspan re-elected, he will not let me for a second term."
Clearly, based on the long-term election political cycle, is the key to Obama indecisive. I believe that, once Obama on tacit understanding from Ben Bernanke have convinced, announced this result but sooner or later.
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