Bernanke Confirmed To Second Term As Fed Chief

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Ben Bernanke was confirmed to a second term as Chairman of the Federal Reserve by the Senate on Thursday, ending weeks of speculation that the Fed chief would not receive enough votes.

The final vote was 70-30, with Bernanke needing only a majority to be confirmed for a second term. The vote came immediately after the Senate voted 77-23 to end further debate on his confirmation. The Senate needed 60 votes to pass that vote and avoid a filibuster.

The debate over Bernanke's confirmation has been a contentious one, as the Fed has come under increasing scrutiny since the 2008 financial crisis.

Though the central bank pumped $2 trillion dollars of liquidity into the economy when the crisis hit, many of Bernanke's opponents blame the central bank for failing to regulate the financial firms whose troubles led to the crisis.

Many lawmakers were angry with the Fed's bailout of large financial firms when the crisis hit.

"We all hated the bank bailout," President Barack Obama said during his State of the Union Address on Wednesday. "I hated it. You hated it. It was about as popular as a root canal."

However, there are many lawmakers that have said the bailouts were necessary to prevent a more devastating economic collapse.

Senators had been weighing in with their opinion about Bernanke throughout the day Thursday on the Senate floor.

Some lawmakers, such as Senator Judd Gregg, R-N.H., praised Bernanke for taking necessary actions to save the financial system once the crisis hit.

"He basically allowed the Fed to become the lender of the nation," Gregg said. "Nobody had ever done that. The way he did was extraordinary in its creativity, and the results were that the country's financial system did not collapse."

However, even some of Bernanke's supporters stressed that the central bank still needed to change.

"The status quo at the Fed is not acceptable, and the nation needs a central bank that is proactive in addressing concerns at our financial institutions," said Tim Johnson, D-S.D.

Opponents of the central bank chief were particularly vehement, criticizing Bernanke for failing to recognize the crisis before it started.

"Bernanke fiddled while our markets burned," said Richard Shelby, R-Ala. "If we don't hold Chairman Bernanke accountable what precedent are we setting for future regulators."

Bernanke's most outspoken opponent has been Jim Bunning, R-Ken., who has referred to his term as Fed chief as a "failure."

"We must put an end to his and the Fed's failure and there is no better time than now," he said.

Bunning was the only Senator to vote against Bernanke when he was nominated for the position as Fed Chairman in 2005.

Last week, Senators from all ends of the political spectrum came out against Bernanke's confirmation, raising concerns that he might not achieve the 60 votes need to end debate on his re-confirmation.

Senator Barbara Boxer, D-Calif., released a statement last week saying she would not vote to confirm Bernanke. In her statement, Boxer said that it is "time for a change - it is time for Main Street to have a champion at the Fed."

Boxer said Bernanke "played a lead role in crafting the Bush administration's economic policies, which led to the current economic crisis. Our next Federal Reserve Chairman must represent a clean break from the failed policies of the past."

Independent Vermont Senator Bernie Sanders also voiced his intention to oppose Bernanke last week, arguing that the American people "do not want another term for the man whose major job as Fed chairman was to protect the safety and soundness of our financial system but instead was asleep at the switch."

Despite so much negativity directed towards the Fed Chairman, he did have his supporters. White House spokesman Bill Burton told reporters last week that President Barack Obama "has a great deal of confidence in what Chairman Bernanke did to bring our economy back from the brink and continues to think that he is the best person for the job and will be confirmed by the United States Senate."

Senator Mark Udall announced earlier this week that he would support a second Bernanke term, saying he was "well aware" of all the criticism directed towards the Chairman, but argued there is "plenty of blame to go around, and making Ben Bernanke a scapegoat will not get our economy back on track."

Support for Bernanke continued to grow as the week went on, and Senate Majority Leader Harry Reid revealed earlier in the week that he had the 60 votes needed to avoid a filibuster on Bernanke's confirmation.

Ben Bernanke was confirmed to a second term as Chairman of the Federal Reserve by the Senate on Thursday, ending weeks of speculation that the Fed chief would not receive enough votes. The final vote was 70-30, with Bernanke needing only a majority to be confirmed for a second term. The vote came immediately after the Senate voted 77-23 to end further debate on his confirmation. The Senate needed 60 votes to pass that vote and avoid a filibuster. (Market News Provided by RTTNews)