Bernanke's '60 Minutes' diplomacy -- did public outreach ensure second term as Fed chair?
President Obama made it official today, interrupting his Martha's Vineyard vacation to nominate Ben Bernanke for reappointment to another four-year term as chairman of the Federal Reserve.
The president said all the predictable things -- that the Fed chair had brought "bold action and outside-the-box thinking" in a way that "helped put the brakes on our economic free-fall." You can read his full remarks below.
And a lot of commentators suggested that Obama had no choice -- despite economic advisor Larry Summers' evident hunger for the job. The president opted for a stability that would make Wall Street happy and avoided further inflaming relations with Congress at a time when Republicans are fighting healthcare reform and criticizing Atty. Gen. Eric Holder's probe of CIA abuses. (Bernanke's reappointment still has to be confirmed by the Senate.)
But it's just possible that Bernanke won his job on television. Bernanke has been a new kind of Fed chairman. First appointed by President Bush, the federal government's banker has shown an Obama-like sensibility to public outreach.
In February, amid the greatest economic meltdown in nearly a century, he appeared before the National Press Club.
In March, he surprised Wall Street by giving an interview to CBS' "60 Minutes," allowing unprecedented access to his thinking and his biography, even walking the streets of his hometown in Dillon, S.C., with CBS' Scott Pelley. No Fed chair had ever granted a television interview before.
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One financial website called it "a move by Bernanke to connect with Main Street, as U.S. citizens feel lost with the billions of bailout money being given to financial institutions while job losses mount." The U.S. News & World Report described it simply as "a great public relations move."
Then in July, the former professor and expert on the history of the Great Depression stunned the world of finance by agreeing to a town hall moderated by PBS' Jim Lehrer in Kansas City, Mo. Taking questions from owners of small businesses and social workers grappling with the effects on clients of home foreclosures, he translated complex Fed policy into common-sense language.
Asked by a Kansas City mother why federal bailout money kept going to big firms, Bernanke explained, “When the elephant falls down, all the grass gets crushed as well.”
Today, Obama made no mention of Bernanke's public outreach. But both men seemed to be in sync on one front: wearing dark blazers and white shirts, they sported no ties as they stepped to the podium. Hey, it's summertime on Martha's Vineyard.
-- Johanna Neuman
Photo: Steven Senne / Associated Press
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