Why Bernanke Needs to Serve a Third Term
Posted at 2:15 p.m. on March 22
As rumors swirl about whether President Obama will ask Federal Reserve Chairman Ben Bernanke to stay on for a third term — and whether Bernanke would accept if offered — Miles Kimball urges the Fed chief to stay on for four more years.
“As Bernanke said, if all goes well, and the economy is firmly on the road to full recovery, many possible Fed chiefs could manage a reasonably graceful exit from quantitative easing and interest rates hovering around zero. But I do not think the economy will be out of the woods by January 2014.”
“In addition to wielding the emergency powers of the Fed to prevent an even worse financial meltdown, Bernanke has played a central role in adding quantitative easing to the standard toolkit of monetary policy in the US… Bernanke has developed an unparalleled skill in explaining and defending controversial monetary policy measures to Congress and to the public.”