The Right Man

That was a close call. The Senate almost denied Ben Bernanke reappointment as head of the Federal Reserve. That’s an example of the deep mistrust of Bernanke’s cheap money policy.

For a long time, Bernanke stood at Alan Greenspan’s side. Greenspan’s easy money policies laid the groundwork for the global financial crisis. Bernanke can also be accused of watching activity in the markets idly from the sidelines for too long a time.

To Bernanke’s credit, on the other hand, he acted decisively as soon as the crisis struck. It’s safe to say his greatest challenge is yet to come: He has to get back the billions in taxpayer dollars used to rescue Lehman Brothers without provoking a new crisis. In the coming year, the Fed will face the labors of Hercules that, for better or worse, will be decisive for the global economy.

It’s best that Bernanke remain at the Fed’s helm. A new man, or even worse a power vacuum, would plunge the world’s most powerful central bank into a deep crisis.