Friday, January 29, 2010

US Fed Chairman Bernanke gets second term

Warren Buffett and Nouriel Roubini have said that this man saved the US economy from going to the dogs. Others like Marc Faber have been against his policies. His critics had a strong case against him - of postponing the pain for the US economy into the future. But most of them still feared that his rejection as the head of US central bank for a second term could make the Fed's policies worse, not better.

So there you are. Ben Bernanke, the Chairman of the US Federal Reserve, has been confirmed for a second term by the US Congress. This vindicates the stand taken by his supporters. They thought that the US economy was badly injured during the crisis and required radical surgery. Hence, it made no sense to change the surgeon now that the patient was starting to recover.

With Bernanke back in the hot seat, and for the next four years, it would be interesting to see how he acts to sustain growth for the US economy. After all, now is the time that he and his team would need to begin reversing a record monetary expansion. And this without undercutting the fledgling recovery in the world's biggest economy

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