Bernanke's Stimulus Plan: An Obama Endorsement?

In a Rupert Murdoch-ized misleading headline, the WSJ proclaims that Fed Chairman Ben Bernanke has endorsed Barack Obama. (Calm down. He hasn’t. Yet.)

But, the Journal argues that Bernanke’s call for a second stimulus package was a virtual Obama endorsement, designed to make the senator from Illinois think of him for Treasury Secretary. But if Bernanke wants to be Treasury Secretary, does that mean he no longer wants to be Fed chairman?

WSJ: Ben Bernanke apparently wants four more years as Federal Reserve Chairman. At least that’s a reasonable conclusion after Mr. Bernanke all but submitted his job application to Barack Obama yesterday by endorsing the Democratic version of fiscal “stimulus.”

While the Fed chief said any stimulus should be “well targeted,” even a general endorsement amounts to a political green light. Mr. Bernanke certainly knows that Mr. Obama and Democrats on Capitol Hill are talking about some $300 billion in new “stimulus” spending, while President Bush and Republicans are resisting. And by saying any help should “limit longer-term effects” on the federal deficit, he had to know he was reinforcing Democratic opposition to permanent tax cuts.


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