Senate Banking Panel Endorses Bernanke
Thursday, November 17, 2005
Ben S. Bernanke moved a step closer yesterday to becoming the next chairman of the Federal Reserve, a job where he will wield much power over the financial fortunes of investors big and small.
The Senate Banking Committee, by voice vote, recommended his confirmation to the full Senate. Considered one of the country's leading economic thinkers, Bernanke is expected to get a positive vote there as well.
Sen. Jim Bunning (R-Ky.) was the only senator present voicing opposition to Bernanke. Bunning cited concerns that the nominee would be too much in the mold of Greenspan and not a sufficiently independent thinker.
Bernanke, 51, is a former Princeton University professor and Fed governor who now serves as chairman of the White House Council of Economic Advisers. Lawmakers and the administration are wasting no time on his nomination because they want him ready to take over when the 79-year-old Alan Greenspan retires Jan. 31 after 18-plus years at the helm.
"Dr. Bernanke is eminently qualified and a superb choice for the nomination of Federal Reserve chairman," said committee Chairman Richard C. Shelby (R-Ala.).
Sen. Charles E. Schumer (D-N.Y.) said Bernanke enjoys "broad bipartisan support" and that he "has the potential to follow in the footsteps of the giants like Paul Volcker and Alan Greenspan."
The choice of Bernanke is seen as a safe one for President Bush, whose job approval ratings are at a low ebb.
Bernanke would lead the Fed at a time when the economy faces challenges, including bloated budget and trade deficits and worries about whether the high-flying housing market will crash. There also are concerns about high energy prices and a lackluster jobs market.