Bernanke’s current term will be up in January and President Obama nominated him for another four-year term. The vote now goes to the whole Senate. It does look like he’s going to get it.

Many would consider Bernanke’s leadership as pivotal in preventing a toal economic crash – what could have been another Great Depression. Though critics would also point out that the housing bubble burst could’ve been prevented and that he has gone overboard in bailing out companies.

Bernanke’s recently been hailed by Time magazine as its Person of the Year.

But no one can’t deny the grace that the Fed chief has shown during these turbulent times effectively preventing an economic collapse that could’ve ushered in the United States’ second Great Depression.

Bernanke’s term has not been without criticism. Some think that the Fed made moves a bit too late and that it could’ve made more definitive moves before the crisis escalated. The Fed was also criticized for keeping interest rates low for long contributing to the housing crisis.

If re-appointed, Bernanke will face more challenges as the government aims to steer the economy towards a real recovery.

The President’s nomination also underscores his willingness to reach across party lines. Bernanke is a Republican. The decision will still be up for a vote before the Senate before Bernanke officially assumes another four-years.

Source: CNN

Last month, the Federal Reserve decided to channel $1.2 trillion into the economy in an effort to combat the worsening recession. It just shows how real concerns are about the failing market and its effect on people’s buying power to prop up the economy.

The Fed plans to prop up the banking sector by eliminating toxic debt. It also aims to tackle the mortgage crisis by boosting purchases of mortgage-backed securities from real estate giants Fannie Mae and Freddie Mac.

Minutes of the Fed’s closed-door meeting last March 17-18 states, “Most participants viewed downside risks as predominating in the near term.”

Source: MSNBC