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Embattled Bernanke edges closer to 2nd term
(Agencies)
Updated: 2010-01-25 09:45
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 US Federal Reserve Chairman Ben Bernanke awaits the beginning of testimony at his Senate Banking, Housing and Urban Affairs Committee hearing on his nomination to continue as Chairman of the Board of Governors, on Capitol Hill in Washington, in this December 3, 2009 file photo. [Agencies] |
WASHINGTON: The White House voiced confidence on Sunday the Senate would approve a second term for Federal Reserve Chairman Ben Bernanke, whose prospects appeared shaky last week, and Senate Democrats hoped to hold the vote this week.
Last week, two Senate Democrats announced their opposition, and uncertainty on Bernanke's confirmation rattled investors, contributing to the worst three-day slide for US stocks in 10 months.
Concerned about the surge of opposition to Bernanke's renomination, President Barack Obama contacted the Democratic Senate leadership on Saturday to make sure there were enough votes.
A spokesman for Senate Majority Leader Harry Reid said the senator hoped to have a vote to confirm Bernanke this week. Bernanke's term expires at the end of the month.
The Senate's top Republican, Mitch McConnell, also said he expected Bernanke to be approved.
"He's going to have bipartisan support in the Senate and I would anticipate he'd be confirmed," McConnell told NBC's "Meet the Press." But McConnell would not say how he would vote.
Bernanke's Critics
Bernanke's critics say the Fed failed to prevent the recent financial crisis, the worst since the Great Depression, and fought the meltdown in a way that favored the financial industry at the expense of ordinary citizens.
With congressional elections in November, many lawmakers are unwilling to take any stand that appears to benefit Wall Street, particularly after Tuesday's Republican upset for the Massachusetts Senate seat that had been a Democratic stronghold for decades.
Some Republicans have imposed a procedural block on Bernanke's confirmation, forcing Senate leaders to secure a super-majority of 60 votes in the 100-member chamber to advance the nomination.
At least 26 senators have said they will back Bernanke and at least 13 senators have said they will vote against the central banker, according to a check by Reuters.
"I think we need a fresh start," Republican Senator John Cornyn told "Fox News Sunday," saying he would oppose Bernanke.
Senator John McCain, the Republican presidential candidate who lost to Obama in 2008, said on CBS' "Face the Nation" he was "both skeptical and leaning against" Bernanke's confirmation.
But Republican Senator Orrin Hatch told CNN he would vote for Bernanke partly out of worry of the nominee the administration would choose in his place.
"There are some things I don't agree with that have been done, but I think he basically has -- has all of the ability to do it," Hatch said. "I'd be terrified of having him replaced by this administration. You never know what you're going to get."
Traders are betting there is a 94 percent chance that Bernanke will win confirmation for a second term, online market InTrade said on Sunday.
Bernanke, who was first named as chairman by former Republican President George W. Bush, was nominated to a second term by Obama in August.
Axelrod on CNN defended Bernanke's handling of the financial crisis.
"We're still in a fragile state here, even though the economy is growing, and we need his leadership," Axelrod said.
"He has been a very steady hand in this crisis. He's taken initiatives that have been important in terms of stabilizing the economy."
The unemployment rate currently stands at 10 percent, with more than 15 million Americans out of work.
