Senate Needs Firm Assurances from Bernanke for Second Term

J.D. Foster and James Gattuso / August 26, 2009

Yesterday, President Obama announced his intention to nominate Ben Bernanke to a second four-year term as Chairman of the Federal Reserve Board. Bernanke’s tenure coincided with the most chaotic and painful period in modern financial history. Bernanke has overseen a previously unimagined expansion in the range of Fed programs, and he played an important part in the nearly unprecedented expansion of the role of the government that has taken place over the past year.

Bernanke’s reappointment must now be confirmed by the Senate. Before endorsing a second term, members must be assured the Fed will return to its core mission, that the recent expansion in its activities will subside quickly, and that the Fed’s balance sheet will be reduced expeditiously roughly to previous levels. Specifically, senators should ask the nominee for firm – and positive – answers to four key questions: (more…)