After much speculation about who would lead the Fed going forward, Obama had to go back with the guy who navigated us through the financial crisis and who spent his career preparing for a financial crisis.
Tomorrow, he’ll officially announce plans to renominate Ben Bernanke for a second term.
Sure, Bernanke has his detractors, but in the end, this is an obvious pick. Sure, he can be blamed for not having foreseen the crisis — putting him in the same category as anyone else Obama might have nominated — but once it hit, he handled things about as good as you’d expect.
What’s more, any other pick on Obama’s part — such as Larry Summers — would have looked politically motivated, and thus seen as a disaster.
Expect a nice lift for all world markets on this news.
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