25 Aug 2009

Bernanke tipped to stay on as Federal Reserve boss

10:04 pm on 25 August 2009

Barack Obama is expected to confirm that he will nominate Ben Bernanke for another term as chairman of US central bank the Federal Reserve.

The American president is expected to take a break from his summer holiday to make the announcement.

Mr Bernanke has been praised for taking action to bail out failing banks, which Mr Obama believes has limited the effects of the economic crisis, the BBC reports.

Mr Bernanke's four-year tenure comes up for renewal in January next year.

In remarks prepared for the announcement, Mr Obama said Mr Bernanke had helped prevent a repeat of the Great Depression.

The Fed, along with the US Treasury, organised the $US700 billion bank bail-out plan in October last year and has since spent another $US3 trillion propping up the credit markets and trying to boost the economy.