WASHINGTON, October 24 – Today President Bush announced his nomination for the position of Federal Reserve Chairman: Ben Bernanke the Chairman of his Council of Economic Advisers. Bernanke has very big shoes to fill as current Chairman for an astonishing 18 years Alan Greenspan is leaving the position is a pretty sound manner. Although the economy has been better it is currently crawling back to the top and Greenspan has done an incredible job over the last few years becoming the true “body” of the Fed.
Bernanke has a tough time ahead for sure, although the economy is on the rise right now there are a few factors making this a rocky road ahead. The sky-high energy prices are one big issue and the natural disasters like Katrina, Rita and Wilma aren’t exactly helping. Inflation is on the rise too and it is likely that the soaring real estate market will crash in the near future too. With these prospects ahead Bernanke needs to establish his credentials early on market analysts say. Many believe he needs to be tough from the get-go on interest rates or he might not have enough credit to stay on the job.
However it will play out, Bernanke is not a man to envy right now. The enormous federal budget deficit, an incredible trade gap and a big shortage of national savings, he has his work cut out for him.
