Obama Nominates Bernanke for 2nd Term

Weak credit and labor markets mean recovery will be slow: Fed chair

(NEWSER) - Ben Bernanke painted a stark picture of the economy today, warning that "formidable headwinds" are working against the incipient recovery. Despite an unexpectedly positive jobs report, the pace of expansion is likely to remain "moderate," the Fed chair said. “Despite the general improvement in financial conditions, credit remains tight for many borrowers,” and the job market “remains weak,” Bernanke said in a speech to the Economic Club of Washington. More»

Fed chief, president expect recovery will strengthen

(NEWSER) - Ben Bernanke isn’t worried about a double-dip recession, despite an economy he acknowledged as unexpectedly troubled this year, reports MarketWatch . “I expect hiring to pick up from last month’s pace as growth strengthens in the second half of the year,” the Fed chairman told a meeting of international bankers in Atlanta. He said that high commodity prices weren’t the Fed’s fault, and that Japan’s earthquake was the cause of poor economic numbers since April. Its effects will wear off in the next few months, he said, helped by the possibility of lower gas prices. More»

Independent's move could force Dems to scrape up 60 votes

(NEWSER) - Saying that Ben Bernanke is too tied to the roots of the current financial crisis and too beholden the institutions that helped cause it, Sen. Bernie Sanders put a hold on the nomination process for a second term for the Federal Reserve chief. The Vermont independent’s move—not much of a surprise given his earlier opposition—could force Bernanke supporters to round up 60 votes to bring the nomination to the floor, rather than bring it to a vote via unanimous consent . More»

Rate cuts, other moves must eventually be reversed

(NEWSER) - In his first term as Fed chairman, Ben Bernanke played the role of savior, lending hundreds of billions to banks and businesses, backing the mortgage market, and cutting interest rates. In his second, Bernanke will have to turn “strict disciplinarian,” reversing earlier moves to respond to a massive deficit, writes Edmund Andrews in the New York Times. That's going to be both difficult and unpopular and risks putting the Fed “on a collision course” with the White House. More»

(NEWSER) - President Obama will nominate Ben Bernanke for a second term as chairman of the Federal Reserve, the Wall Street Journal reports. Obama, who will make the announcement tomorrow, credits Bernanke with “pulling the economy back from the brink of depression,” White House chief of staff Rahm Emanuel said tonight. The nomination requires Senate approval; Bernanke’s first 4-year term expires in January. More»