Obama hints he won’t renominate Bernanke

Los Angeles TimesJune 18, 2013 

Federal Reserve

Federal Reserve Board Chairman Ben Bernanke testifies on Capitol Hill in Washington, before the Senate Budget Committee.

ALEX BRANDON — AP

President Barack Obama suggested he might not renominate Ben Bernanke for a third term as chairman of the Federal Reserve, saying the central bank chief has already stayed in the job longer than originally planned.

In a PBS interview that aired late Monday, Obama did not directly answer a question about whether he would renominate Bernanke, whose term as chairman ends in January.

Instead, Obama praised Bernanke and compared him to FBI Director Robert Mueller III, who is stepping down in September after 12 years on the job.

“I think Ben Bernanke’s done an outstanding job,” Obama told PBS’ Charlie Rose in the interview taped Sunday.

“Ben Bernanke’s a little bit like Bob Mueller, the head of the FBI, where he’s already stayed a lot longer than he wanted or he was supposed to,” Obama said.

With the Fed playing an oversized role in the U.S. economy, investors and analysts are keenly interested in who will be heading the central bank next year and beyond.

Fed policymakers are grappling with when and how to start pulling back on their unprecedented stimulus efforts.

Bernanke, a Dillon native, guided the central bank through the Great Recession and financial crisis and could be ready to step aside after more than seven grueling years in the job. But he also could decide he would like to continue leading the Fed through the complicated process of unwinding its controversial stimulus programs.

The Fed’s Open Market Committee started a two-day meeting Tuesday, and Bernanke is set to hold his quarterly news conference Wednesday amid speculation that the central bank soon might start reducing its $85 billion in monthly bond purchases designed to boost the recovery.

Bernanke, who has been chairman since Feb. 1, 2006, is a Republican who was originally tapped for the job by President George W. Bush.

Bernanke hasn’t indicated if he would seek another term.

In the PBS interview, Obama lauded Bernanke’s leadership of the Fed and noted that its policies have helped the U.S. rebound more strongly from the financial crisis than the eurozone, which is stuck in another recession.

Most analysts believe that the leading choice to succeed Bernanke would be Fed vice chairwoman Janet Yellen, the former head of the Federal Reserve Bank of San Francisco.

The State is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

Commenting FAQs | Terms of Service