Bernanke to Head Fed

President Bush will appoint Ben Bernanke to be the next chairman of the Federal Reserve. He’s currently the head of the President’s Council of Economic Advisers. From 2002 to this past June, Bernanke was a Fed Governor.
We don’t get new Fed chairmen often. Alan Greenspan has held the post since 1987. Paul Volcker Fed chariman from 1979-1987. If confirmed by the Senate, Bernanke will be the 14th Fed chairman since the Fed’s creation in 1914. He would takeover on February 1, 2006.
There’s an old Vatican saying that “a fat pope is followed by a thin pope.” Perhaps the central banker version is that a jargon-filled Fed chair is followed by a plain-speaking one. The media likes the fact that Bernanke speaks clearly and is much easier to understand than Greenspan.

My proposal that Fed governors should signal their commitment to public service by wearing Hawaiian shirts and Bermuda shorts has so far gone unheeded.
-Ben Bernanke

I can’t picture Alan Greenspan saying that. For more Bernanke, here’s a speech he gave warning against the dangers of deflation.

Posted by on October 24th, 2005 at 10:57 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.