The Senate must not give Bernanke a free pass
In reconfirming the Fed chief, his past mistakes and potential actions on inflation need better public scrutiny.
And President Obama had little choice but to nominate him. The Bernanke-led financial rescue is only half done.
Swapping a thoroughbred economist midstream for an unknown appointee would only invite concern in the markets. Much of the work that Mr. Bernanke has begun still needs to be finished – and with care.
As the president said Tuesday, the Fed chief has shown he has the background, temperament, courage, and creativity to try bold solutions. As a Republican nominated by the Republican George W. Bush, he has also shown he can sail past Washington's political shoals.
Still, the Senate should not give him a free pass. He needs to be pressed about the immense powers and influence that the Fed has gained as a result of the "great recession" of 2007-09. The central bank, supposedly an independent arm of government, has in effect become the fourth branch.
Most of all, senators should ask how Bernanke will avoid risky inflation. He needs to carefully pull trillions of dollars that he pumped into the economy for easy credit before all that money starts to create inflation, especially in certain markets. The last chairman of the central bank, Alan Greenspan, failed to curb the Fed's easing of credit in 2003-04, leading to the housing and credit bubble that crashed the economy in 2007.