Fate of refraction of the Federal Reserve Ben Bernanke battle Congress.

<P> If you want to comfort the feelings of Fed Chairman Ben Bernanke is now, with "things never come easy," the words most appropriate. .Federal Reserve Chairman Ben Bernanke's term will expire Jan. 31, Obama had nominated him for re-election last year, everything should have been a matter of course, but recent U.S. Massachusetts Senate re-election, seats fall into the hands of Republicans, Democrats lost .the absolute control of the Senate, then Republican members took the opportunity to make things difficult, said the re-election to vote against Bernanke. .</ P> <P> rejected a motion put forward easy, but very difficult to find a reason for rejection, as Bernanke in the rescue measures taken in the process is indeed commendable. .Let's look at Japan last century, when the 90's measures to tackle the economic crisis. .The Government was aware of the shortage of liquidity of the financial system will affect the normal loan, so the use of a large number of national financial resources to the banks to inject liquidity. .However, enterprises in order to help the economy at that time most of the funds used for debt reduction to, resulting in a large number of new assets, doing nothing, because the funds do not go out loans, while the original value of the assets fall because of shrinking, that the government's rescue without success .back. .</ P> <P> Clearly, Bernanke learned a lesson from Japan in the rescue measures on the "two-pronged": In addition to direct capital injection, Bernanke decided to act decisively to cut interest rates for a lot of liquidity into the financial system; the other ., the Bernanke by stripping the toxic assets of banks to optimize their balance sheet. .After a year of practice, the results permit Mingbonanke decision is correct, many of Wall Street's big firms recently announced the four seasons of the large-than-expected report can illustrate the problem. .In addition, there is another evidence, "Time" magazine named the 2009 Person of the Year Ben Bernanke, saying it was made into the U.S. from another hero of the Great Depression. .Can also be seen from this point, Bernanke to address the financial crisis, rescue measures taken and achievements have been recognized by most people. .</ P> <P>, of course, Bernanke and then re-active and capable, is also not irreplaceable. .In particular, he has also left a "handle": give up the inflation target has been pegged respected practice of monetary policy, the opposite, to create a lot of loose monetary policy, liquidity, which may make the United States in the future into a vicious inflation. .</ P> <P> However, by this time, "Bernanke even Renfeng Bo" can understand this point, that is, the conflict between Congress and the Federal Reserve. .</ P> <P> Bernanke led the Fed in trying to tackle the financial crisis, but also exposed the extent of the influence of the Fed. .Bernanke bailout strategy quickly converted by the quantitative easing policy, totally ignore the views of Congress, from this perspective, the Fed is likely to be the best body to monitor systemic risk. .It can be seen, I am afraid that the future can no longer allow the Federal Reserve in Washington, "whatever", to strengthen the regulation is inevitable. .However, if the Government strengthen supervision, and will inevitably undermine the independence of the Federal Reserve, and has left monetary policy too. .</ P> <P> well known and independent monetary policy a good point, but nonetheless the reality is always difficult to draw the boundaries of an independent one, the Fed chairman is a political appointment to this position; Secondly, independence to .Like Greenspan, the Fed chairman's seat is 16 years of a ride, not a good thing too arbitrary. .</ P>.