Bernanke sworn in as 14th Fed chairman (AP) Updated: 2006-02-02 08:48
Ben Bernanke was sworn in Wednesday to be the 14th chairman of the Federal
Reserve, completing an historic changing of the guard at the central bank.
This photo provided by the Federal Reserve
System shows Ben Bernanke, right, sworn in as the 14th Chairman of the
Federal Reserve Board by Vice Chairman Roger Ferguson Jr., Wednesday, Feb.
1, 2006 at the Federal Reserve in Washington. Bernanke succeeds Alan
Greenspan. [AP] |
Bernanke’s first major piece of business is likely to decide what to do next
with interest rates.
Many economists are betting that the Fed, which increased rates for a 14th
consecutive time on Tuesday, will raise rates one last time at the next meeting
on March 28 — Bernanke’s first as Fed chief. Then, the Fed probably will stand
pat for perhaps the rest of the year.
One of the reasons many analysts believe that the central bank will nudge
rates up one last time is a feeling that Bernanke will want to show that he is
just as much of an inflation-fighter as his predecessor, Alan Greenspan.
“Bernanke will feel the need to look tough in the fight against inflation and
a good way to do that is to raise rates another quarter point,” said economist
David Jones, head of a Denver-area consulting firm.
The oath of office was administered to Bernanke in the Fed’s stately board
room by vice chairman Roger Ferguson.
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