Comment, analysis and news from the FT, with a special focus on the decision by US President Barack Obama to reappoint Ben Bernanke for another term as chairman of the US Federal Reserve:
Editorial comment: Ben Bernanke’s next four years
At a time when political tempers are running high and world markets remain jittery, Barack Obama has made the right decision to keep Ben Bernanke on for a second term as Fed chairman, says an FT editorial comment. The Senate must now proceed with hearings to remove the remaining uncertainty.
Mohamed El-Erian: Now for Bernanke’s ‘to-do’ list
President Obama’s announcement reappointing Fed Chairman Bernanke for a second four-year term does, and should, command broad based support, writes El-Erian, Pimco’s chief executive and co-chief investment officer. Crisis management has defined Bernanke’s first term. His second term promises to be equally challenging as it will be defined by four major issues – none of them are easy to deal with on a standalone basis.
Stephen Roach: The case against Bernanke
Barack Obama’s move to nominate Ben Bernanke for a second term as chairman of the Federal Reserve is a very shortsighted decision, writes Roach, chairman of Morgan Stanley Asia and author of The Next Asia to be published next month . While America’s head central banker deserves credit for being creative and courageous in orchestrating an unusually aggressive monetary easing programme, it is important to remember that his pre-crisis actions played an equally critical role in setting the stage for the most wrenching recession since the 1930s.
US daily view, video: Francesco Guerrera
Markets and bankers are happy with Obama’s decision to reappoint Ben Bernanke because it assures continuity at the helm of the world’s most important financial regulator, says Guerrera, the FT’s US business editor.
Analysis: Towards the next peak
The FT’s Krishna Guha looks at Bernanke’s task at the Fed in the context of the challenges facing all central bankers in the coming few years.
Bernanke will reach out to critics
In an effort to reach out to his critics, the Fed chief — whose reappointment has to be confirmed by the Senate — will offer to work with Congress to improve Fed transparency and oversight but in ways that do not threaten its independence, reports Krishna Guha.
What the markets wanted, and didn’t want
Despite the strong backlash against the Federal Reserve on Capitol Hill, few expect Ben Bernanke’s nomination to be rejected, writes the FT’s Washington bureau chief Edward Luce. But a number of Democrats believe Mr Bernanke was too closely associated with the Fed’s institutional failings in the build-up to last year’s financial meltdown.
Lex – Bernanke reappointed
Since the day Ben Bernanke was appointed the 14th chairman of the Federal Reserve, the US economy has not grown by a single dollar in real terms, says Lex. Yet Bernanke was nominated for a second term on Tuesday to near unanimous approval – which highlights a strange truth about central banks and those who run them.
Activism wins seal of approval for Bernanke
When Ben Bernanke was appointed Fed chairman, many wondered how the mild-mannered academic would fare in the shadow of Alan Greenspan and Paul Volcker, his renowned predecessors. Now Bernanke’s supporters say he is on his way to establishing his own standing in the pantheon of great Fed chairmen, notes the FT’s Krishna Guha. His renomination by Barack Obama, US president, marks the ultimate seal of approval on his activist use of central bank powers to combat the financial crisis.
A rundown of views and news: Should Bernanke get a second term?
Timeline: Bernanke’s actions in the financial crisis