Bernanke was elected to serve a second term as the head of the Federal Reserve. The debate preceding the decision included arguments that the Fed had not done its part to help the housing and credit bubbles, allowed banks to keep dangerously low reserves and be reckless with their lending. They accused him of helping big banks while hurting small business and households. Some critics are even calling for him to "be held accountable".
The other major ciritisicm against Bernake is that he allowed the Fed to become an arm of the Treasury and therefore loose its independence.
However, supporters said that Bernanke was a key part of Obama's administration and had done a great deal to save the economy from far worse. They insisted that the "Fed’s injection of $2 trillion of liquidity into the economy, starting in 2008, helped avert disaster".
"Mr. Bernanke has presided over a fundamental shift in the Fed’s role and visibility. The central bank’s role in bailing out financial giants like the American International Group, its huge purchases of troubled assets and the doubling of its balance sheet in two years have no precedent."
I think was the right decision to bring Mr. Bernanke back. I think it was very important to bring back the same guy who has started all these new policies and started action on trying to save our economy from failing. I believe if not bring Mr. Bernanke back would mean that a new person would have to be hired, which takes time, and our economy does not have time to wait around, we need a fix, quickly.
ReplyDeleteAlso the next person in charge might have not agreed with all of Mr. Bernanke's new decisions and might have changed them or deleted his new polices completely. So in the end I believe it was great to bring him back and he will he in the forefront to bringing out economy back to where it should be.