US Federal Reserve Chairman Ben Bernanke will most likely step down from his position in January 2014, even if President Barack Obama stays for a second term, according to friends of the chairman.
This probably sounds like good news, especially since there are a lot of folk that tend to hate Bernanke’s guts (and rightfully so, I must add). However, this could turn out to be somewhat problematic in the long run because, in public discourse, “Federal Reserve Policy” has become conflated with “Ben Bernanke’s Policy.” Allowing Bernanke to resign could have the effect of taking some of the scrutiny and heat off of the Fed since Bernanke’s resignation non-renomination would be viewed as a victory by those who have generally been critical of Fed/Bernanke policy these last few years. By offering Bernanke as a scapegoat, it may be possible for the Fed to lower its public profile and thus get away with even more economic disruption and destruction. So, while it is nice to see that Bernanke has no desire to run the Fed anymore, the more important thing is ensuring that no one wants to run the Fed, to the point where they will “lock the doors and leave the building to the spiders, moths and four-legged rats.”