It’s not what you were thinking (today’s FOMC report). The good news was that Bernanke and Geithner see the handwriting on the wall. They will both head for the unemployment lines if Romney wins. Geithner says he wants out if Obama wins. His replacement will be another lackluster Keynesian. While Bernanke’s appointment will not run out until January 2014, my call is that he will be asked to resign by Romney, after a suitable period of time after the election to calm the markets. This is something that I had said in May of 2011 and, assuming Romney wins, it looks as if it will happen.
My fear is that Romney will just appoint one of his cronies to the Chairmanship and business at the Fed will resume business as usual. While I agree with Ron Paul about the Fed, while we have it, we need someone who understands what money is. None of them do. Volcker did, at least he did the right things back in 1979-1982. Hope for the best here. Geithner will join Goldman or some similar investment bank and reap huge rewards, and Bernanke will give speeches for the rest of his life, perhaps returning to academia. Adios and thanks for all the fiat money.
October 23, 2012 12:02 PM ET(Reuters)
U.S. Federal Reserve Chairman Ben Bernanke has told close friends he probably will not stand for a third term at the central bank even if President Barack Obama wins the November 6 election, the New York Times reported.
Republican presidential nominee Mitt Romney has already said he would not re-nominate Bernanke if he wins the presidency. Bernanke’s term as chairman ends in January 2014.
Bernanke, who was first appointed to run the U.S. central bank by former president George W. Bush and was given a second term by Obama, has declined to comment publicly on whether he would accept another four-year term.
“I am very focused on my work, I don’t have any decision or any information to give you on my personal plans,” he told a news conference last month after the Fed announced a new and open-ended round of bond buying to support the U.S. economy.
The Fed and the White House declined to comment.
The Fed’s unconventional efforts to spur growth have been criticized by many Republicans and some economists who argue that they threaten future inflation and abet profligate spending in Washington.
“There is a consensus that even as the personnel change and so going forward, that this is the appropriate approach,” he said last month.
Treasury Secretary Timothy Geithner has already made it clear he wants to leave by the end of the year.
Former Treasury Secretary Lawrence Summers would be at the top of Obama’s list to replace Bernanke, although his reputation for not being a team player could count against him, New York Times columnist Andrew Ross Sorkin wrote.
Longer shots include Janet Yellen, the vice chairwoman at the Fed, and economist Alan Krueger, a former assistant secretary of the Treasury for economic policy, or even Geithner, Sorkin wrote in his “Dealbook” column.
Glenn Hubbard, who headed the Council of Economic Advisers under George W. Bush, is often mentioned as Romney’s most likely nominee for the Fed chairmanship or the top job at the Treasury Department.