FEDERAL RESERVE SYSTEM, INTEREST RATES AND MONEY SUPPLY Essay

Bernanke is a highly controversial figure. On the one hand, he is considered to be one of the most successful chairmen of the Fed and leading economists, whereas, on the other hand, he has been severely criticized since the beginning of the economic recession in the US. In such a context, the re-appointment at the position of the chairman of the Fed is highly controversial and this decision is likely to be erroneous. At any rate, Bernanke has already proved his inability to take the situation in the US economy and financial markets under control with the help of regulations available to the Fed.
In fact, the re-appointment of Bernanke for the second term as the chairman of the Fed was probably motivated by his authority in the field of economy and finance. At any rate, Bernanke is a reputable economist, whereas his theoretical developments in the field of economy and finance have gained the recognition among scientists (Ben Bernanke, 2011). However, being a good economist does not necessarily mean being capable to help the US to cope with the economic recession at the position of the chairman of the Fed. In fact, Bernnake held this position and failed to prevent the economic recession. Therefore, he should take responsibility for the economic recession and poor policies conducted by the Fed that have failed to prevent the economic recession and consistent deterioration of the economic situation in the US.
In such a situation, the Congress has made an error, while taking the decision to re-appoint Bernanke at the position of the chairman of the Fed. In fact, the Congress just granted Bernanke, who proved to be neither able to prevent nor able to cope with the economic recession. Therefore, the economic recession is likely to carry on after his re-appointment, whereas policies conducted by the Feed will be ineffective. The strategy launched and implemented by Bernanke was ineffective. Moreover, a large part of the public does not support policies conducted by the Fed. In fact, Bernanke supports policies and strategies that are oriented on the support of large corporations. Therefore, Bernanke is a proponent of large corporations and he protects interests of large corporations mainly.
Bernanke stands on the ground that the support of behemoths of the US economy, including monetary means, will allow the US to recover faster. However, such a position leads to the unjust support of large corporations and deterioration of the economic and financial position of the majority of Americans. Therefore, the society is unlike to support such policies and the re-appointment of Bernanke is likely to raise the public disagreement and opposition that will aggravate the socioeconomic situation in the US even more.
In such a context, the decision to appoint a new person, who has a different vision of the recovery of the US economy and policies being conducted by the Fed would be more reasonable compared to the decision to re-appoint Bernanke. The Fed needs a new chairman, who can help the US economy to recover faster and who can make the Fed conducting effective monetary policies that protect national economic interests but not interests of a limited group of people, owners of large corporations. Bernanke’s policies have proved to be ineffective. Therefore, the Fed needs changes and a new chairman can bring these changes.