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Bernanke set for second Fed term Bernanke named for new Fed term
(about 8 hours later)
President Obama is expected to confirm that he will nominate Ben Bernanke for another term as chairman of the US central bank, the Federal Reserve. President Obama has confirmed that he has nominated Ben Bernanke for another term as chairman of the US central bank, the Federal Reserve.
The president is expected to take a break from his summer holiday to make the announcement. The president took a break from his summer holiday to make the announcement.
Mr Bernanke has been praised for taking action to bail out failing banks, which Mr Obama believes has limited the effects of the economic crisis.Mr Bernanke has been praised for taking action to bail out failing banks, which Mr Obama believes has limited the effects of the economic crisis.
Mr Bernanke's four-year tenure comes up for renewal in January. Mr Bernanke's initial four-year tenure is to come up for renewal in January.
In remarks prepared for the announcement, Mr Obama said Mr Bernanke had helped prevent a repeat of the Great Depression. 'Price stability'
"Ben approached a financial system on the verge of collapse with calm and wisdom, with bold action and outside-the-box thinking that has helped put the brakes on our economic free-fall," the president is expected to say. Mr Obama said Mr Bernanke had helped prevent a repeat of the Great Depression.
"Our auto industry is showing signs of life. Business investment is showing signs of stabilizing. Our housing market and credit markets have been saved from collapse. "Ben approached a financial system on the verge of collapse with calm and wisdom, with bold action and outside-the-box thinking that has helped put the brakes on our economic free-fall," the president said.
"Taken together, all of these steps have brought our economy back from the brink. They are steps that are working," he will say. "Our auto industry is showing signs of life. Business investment is showing signs of stabilising. Our housing market and credit markets have been saved from collapse.
Future speculation "Taken together, all of these steps have brought our economy back from the brink. They are steps that are working," the president said.
Mr Bernanke said that the Federal Reserve had "been challenged by the unprecedented events of the past few years".
And he vowed that, if confirmed in his post by the Senate, to work with his fellow Fed members towards "growth and prosperity in an era of price stability".
Market support
The Fed, along with the US Treasury, organised the $700bn (£496bn) bank bail-out plan in October 2008, and has since spent an additional $3 trillion propping up the credit markets and trying to boost the economy.The Fed, along with the US Treasury, organised the $700bn (£496bn) bank bail-out plan in October 2008, and has since spent an additional $3 trillion propping up the credit markets and trying to boost the economy.
There had been speculation that Mr Bernanke would be replaced, perhaps by Larry Summers, who is the White House chief economic adviser.There had been speculation that Mr Bernanke would be replaced, perhaps by Larry Summers, who is the White House chief economic adviser.
But that would have gone down very badly with the financial markets, who see Mr Bernanke as the person who almost single-handedly staved off a meltdown, says the BBC's Greg Wood in Washington.But that would have gone down very badly with the financial markets, who see Mr Bernanke as the person who almost single-handedly staved off a meltdown, says the BBC's Greg Wood in Washington.
Mr Bernanke was named as Federal Reserve chairman by Mr Obama's predecessor, George W Bush, in 2005.Mr Bernanke was named as Federal Reserve chairman by Mr Obama's predecessor, George W Bush, in 2005.
His re-appointment must be confirmed by the Senate.His re-appointment must be confirmed by the Senate.