Fed Chairman Bernake Still Holds Keys to the Economy
Amid news of the U.S. economic downturn and the post-election events, a Newsweek Web Exclusive article described Ben Bernanke as “the most powerful economic policymaker in Washington.” As Chairman of the Federal Reserve, Dr. Bernanke is always one of the top subjects of financial news along with the bankruptcy of several of the biggest American financial companies (Lehman Brothers in September 2008) and the bailout packages extended by the Federal Reserve (to AIG and Citigroup).
Ben S. Bernanke was born in Augusta, Georgia in December 13, 1953. He studied economics in Harvard University and graduated summa cum laude in 1975. He earned his doctorate in economics in Massachusetts Institute of Technology in 1979. His teaching career started in Stanford University and in New York University. In 1985, he was a professor at Princeton University.
Bernanke worked with the Federal Reserve beginning 1987. His public service highlight was his appointment as chairman to the president’s Council of Economic Advisers in June 2005. In October 2005, he was nominated by President George Bush to replace outgoing Federal Reserve Chairman Alan Greenspan. He was appointed Chairman of the Federal Reserve System in February 2006. His term will end in 2010.
The Federal Reserve System is an independent government institution created by the Federal Reserve Act in 1913. It functions as a central bank for the United States, monetary policy-making body and as fiscal agents for the Treasury. Its main purposes are supervision over banking institutions, protection of credit rights of consumers, management of money supply and provision of financial services to domestic and foreign government institutions. Its policies and regulatory actions do not require presidential or congressional approval. However, it reports to Congress and only Congress can control its regulatory powers.
The term of the members of the Board of Governors is not coterminous with the U.S. president who appoints them to the Federal Reserve. Each of them will serve 14 years as member of the Board of Governors.
Article Source: Newsweek