26 Aug 2009

US Fed head nominated for another term

5:27 am on 26 August 2009

President Barack Obama has nominated Ben Bernanke for another term as chairman of the US Federal Reserve.

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.

Mr Bernanke's initial four-year tenure is to come up for renewal in January.

Mr Obama said Mr Bernanke had helped to prevent a repeat of the Great Depression.

Mr Bernanke said that the Federal Reserve had "been challenged by the unprecedented events of the past few years".

He vowed that, if confirmed in his post by the Senate, he would work with his fellow Fed members towards "growth and prosperity in an era of price stability".

Along with the US Treasury, the Fed organised a $US700 billion bank bail-out plan in October 2008, and has since spent an additional $US3 trillion propping up the credit markets and trying to boost the economy.

Mr Bernanke was named as Federal Reserve chairman by President George W Bush in 2005.

His re-appointment must be confirmed by the Senate. The BBC reports this is expected to be a formality.