Reaction to Bernanke’s reappointment

Steve Henn Aug 25, 2009
HTML EMBED:
COPY

Reaction to Bernanke’s reappointment

Steve Henn Aug 25, 2009
HTML EMBED:
COPY

TEXT OF STORY

Steve Chiotakis: After months of rumors and speculation in Washington about whether Fed Chairman Ben Bernanke would be reappointed to another term, the wait and the debate are apparently over. Later today President Obama is expected to announce Bernanke will stay for another term. Marketplace’s Steve Henn has reaction.


Steve Henn: Bernnake is a known quantity and this is one less thing for the markets to be nervous about. Peter Hahn’s a former Citibank exec and at the John Cass Business School in London. He says today’s announcement will put an end to what was shaping up to be a distracting debate.

Peter Hahn: In Europe we tend to make these changes pretty much by fiat. They are done deals. But in America any change would involve a massive amount of discussion and trying to influence future policy.

And that, Hahn says, could have easily upset the markets.

Hahn: So if the point is trying to not lose sight of where we’re going, it would probably be disastrous to change the person.

Bernanke’s first term is scheduled to end in five months. Hahn says his early reappointment is likely to reassure investors worried about political pressure on the Fed and future U.S. inflation.

In Washington I’m Steve Henn for Marketplace.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.