Today Barack Obama is suspending his vacation schedule of eating soft-serve made from the tears of a million Fox News radio hosts, just for an hour or so, in order to make a very important announcement: Ben Bernanke, the straight-talking, nose-holding Chairbeard of the Federal Reserve is going to keep his job.
Having pumped hundreds of billions of dollars into the financial system and tried to heal the economy with near zero interest rates, Mr. Bernanke needs to decide how and when to pull back. If he moves too soon, he could undermine a recovery, as happened in the U.S. in the 1930s and Japan in the 1990s. But if he moves too slowly, he could spur a new period of inflation, as in the U.S. in the 1970s.
Of course, for months Bernanke-haters have been grumbling about punishing Ben for failing to foresee the severity of the recession and screwing Lehman Brothers and doing a little hm-hm with Bank of America.
Tags: Barack Obama, Ben Bernanke, Economy, Federal Reserve, Vacation