Dated: September 6, 2013
Remember the days of the financial tsunami in late 2008 and early 2009 when the stock market had tanked and investors were in a panic? Remember the clamor of financial pundits who raised the specter of a double-dip recession soon after the market partially recovered? Now that the economy has largely recovered, does anyone remember the very person who almost single-handedly engineered the economy’s rehabilitation? You generally only want to replace executives if they are doing an inadequate job. Does this rule apply to Bernanke? That is why I cannot figure out why President Obama wishes to remove him as chairman of the Federal Reserve.
Mr. Bernanke has been a steady helmsman who has guided the nation away from stormy waters via several rounds of quantitative easing. But his job is only half complete; he has yet to taper the quantitative easing to nurture the economy back to normalcy. If people believe he has done a great job so far, he should be allowed to stay at the helm and complete the task.
I personally believe that Bernanke ought to let the public know that he intends to stay on as the Fed chairman, if only to preserve his legacy for generations to come. Frankly, I am surprised that the beneficiaries of his policies have not uttered a word in favor of keeping him on the job. Instead, Wall Street pundits are wasting time and energy speculating about who is going to be the next Fed chairman.
Between Yellen and Summers, I strongly prefer Yellen. Unfortunately, Summers’s life energy is on an ascending path while Yellen’s has bees descending since the beginning of 2014. If Summers is chosen, Yellen will likely be squeezed out of the Federal Reserve Board. Interestingly, Bernanke’s star will be dimming in the next few months but will be shining bright again at the beginning of 2014. Bernanke’s star will remain radiant for years to come because history will look upon his work favorably. I hope he will be able to keep his job somehow because I would feel much more confident investing in the stock market with him around.