The second mandate of Bernanke is not sure
Future of Ben Bernanke, who on 31 January to appear in the U.S. Senate to be reelected for a second term in office of President of the U.S. Federal Reserve (Fed), is less certain, says the online edition of the WallStreet Journal. At the end of last week the number of senators who will vote against the increase, incl. and members of the Democratic Party. Fed is subjected to very severe criticism over its policy during the passing decade of this century. According to the Financial Times the charges were for common monetary policy for financial market deregulation, weak control over the banks, which has indeed led to the emergence of the financial crisis. However, many legislators are unhappy with the actions of the U.S. central bank and specifically by Bernanke and himself during the crisis, incl. and rescue of the banking system and specifically the insurance giant AIG, to whom was committed and guaranteed $ 180 billion public money. On Friday, the Democratic Party Senators Barbara Boxer and Ras Feynhold, who are partial elections for their eventual re-election, said they would vote against a second term of Bernanke. “The next chairman must not be associated with a failed financial policies of the recent past,” said Boxer to WallStreet Journal. According to the newspaper, referring to Dow Jones Newswires, for 15 senators have announced that Bernanke will not support (4 Democrats, 10 Republicans and one non-party), 26 senators, however, have announced that they will support it, while 59 does not have publicly announced comment. Bernanke needs 60 votes to get a second term.
The U.S. Senate is the upper chamber of Congress and every state is represented by two senators, a total number 100. Senator’s term of office is 6 years as the biennial election for the renewal of one third of the seats in the Senate. Until last week no doubt that Bernanke will be reelected for a second term but lost the election in Massachusetts by Democrats last week because of what the ruling party lose its constitutional majority of 60 votes. This opened a populist rhetoric and intensify further attacks against the banking system.
The White House declared in defense of Bernanke still five months ago, when President Obama said he wants to be elected for a second term. For this recall and deputy press secretary, White House Bill Burton. He said, quoted by Fianancial Times, that the president has full confidence in Bernanke and the best candidate for this position which has helped the U.S. economy to the precipice of get out. As always in such cases, all looking guru Warren Buffett. Asked by a correspondent for CNBC what would happen if Bernanke is selected, the investor said laconically: “Just tell me why a day earlier to be able to sell a quantity of shares.” According to Christopher Todd, chairman of the Senate Banking Committee, Bernanke if not reelected, the markets will get a bad message and can lead to serious disruption.
The Senate may request the procedure for re-election of this very Bernanke Wednesday, January 27th. However, if he is not reelected to the 31 January to enter into a long procedure, but is now said to be nominated his deputy, Donald Knight.
Tags: Ben Bernanke, Bernanke, Democratic Party, FED, Federal Reserve, second mandate