Why Bush Picked Bernanke

Wall Street Journal ^ | October 25, 2005 | Fred Barnes

[yoe]

President Bush knew exactly what he wanted yesterday when he picked a successor to Alan Greenspan as chairman of the Federal Reserve Board. He sought a nominee as risk-free as possible, someone with little chance of either encountering a bitter confirmation fight or, once in office, of opposing his economic policy. So Ben Bernanke, now the chairman of the Council of Economic Advisers (CEA) at the White House, was the logical choice.

In fact, the president had settled on Mr. Bernanke, 51, by late last week, though the actual nomination was not to be announced until later this month or early November. In the meantime, Mr. Bernanke was to begin a series of pre-nomination meetings on Wall Street yesterday to chat with financial leaders. But the meetings were postponed and the announcement of his selection was speeded up -- at the urging of Republican Sen. Richard Shelby of Alabama, chairman of the Senate Banking Committee -- to assure confirmation by Christmas.

[snip]The question now facing President Bush is whether Mr. Bernanke will indeed look sympathetically at his economic policy. I recently asked a strong candidate for the Fed job -- you'll have to guess which one -- if a Fed chairman owes any obligation to the president who appoints him, perhaps adapting monetary policy to the president's liking. The answer was No. So, Mr. President, don't set your hopes too high.

[.cnI redruM]

Implementing a specific President's economic priorities is not in the Fed CHairman's job description. Let's hope for our kids' sake that it never is. Even if you like GWB's economic ideas, you may not be so crazy about the next President who gets to appoint a Fed Chairman.

[kjam22]

I think he missed a golden opportunity. Seems this would have been a good time to nominate someone that would be controversial.... just to take some heat off the Miers nomination. :)

[Cicero5]

IMHO -- Bernanke will be a disaster. He will destroy the dollar even faster than Greenspan was doing it, Bernanke will just finish the job. Go into google and search "bernanke printing press". Read what this guy has to say about monetary policy.

[HuntsvilleTxVeteran]

Buy GOLD!

[zeugma]

He sought a nominee as risk-free as possible, someone with little chance of either encountering a bitter confirmation fight or, once in office, of opposing his economic policy.

Isn't that pretty much a given with all his nominations? Wouldn't wanna make the democrats angry don't ya know?

[Mr. Jeeves]

Yeah, I always had some faith that despite Greenspan's recent poor decision-making, somewhere deep down inside he knew better. He knew that reckless money-creation was wrong, and that some day, when political expediency no longer demanded it, he would try to steer the ship back in the right direction.

Bernanke, on the other hand, is a true believer - a Holy Warrior of stealth inflation and helicopter money. God help us all - but this clown's going to steer us straight into a massive depression.

[DManA]

Greenspan picked him a year ago. Bush merely acquiesced.

[EQAndyBuzz]

Hey, I have an idea. Let's just bash everything that Bush is doing.

Then this site could be just like DU.

[DManA]

Not bashing - just a fact.

[mdefranc]

"Greenspan picked him a year ago. Bush merely acquiesced." - DManA

Not per the article. It says Greenspan's recommendations were Ferguson and Kohn.

[SONbrad]

The Bush-bashers don't let facts get in the way. They just love to make things up and then discuss them as "fact". LOL

[Trust but Verify]

That's just for public consumption.
/sarcasm

[DManA]

He, whom the gods would make chairman is first appointed to the council of econ advisors. This was done with Bernanke 6 months ago.

[TruthNtegrity]

I not only agree with everything you wrote, but I'd also like to add that he's an "inflation hawk" who sees inflation (like Greenie does) where it doesn't exist, and it's fine with him if he kills the economy in efforts to keep inflation under control.

Greenspan has et the table for a recession next year, and Ben won't stop it and will probably add to the problem.

We need the dang FEDS to take their pinkies off of the interest rates, and relax that inflation is the hallmark of a growing economy, and stop setting into motion the coming recession by raising rates and tightening the money supply.

I fear that Ben is no better than the exuberant-fighting guy. Greenie cost me $5000 the day he said that. I've been waiting for him to retire, ever since.

I think the "Maestro" is a jerk.

His successor is no better.

[kaktuskid]

IMHO -- Bernanke will be a disaster. He will destroy the dollar even faster than Greenspan was doing it, Bernanke will just finish the job. Go into google and search "bernanke printing press". Read what this guy has to say about monetary policy.

Then why did the Dow go up 170 points after he was picked?