The perspectives of keeping his job in the Federal Reserve by Ben Bernanke have been put into doubt last Friday, when the Obama administration was trying to ensure its power in the Senate.

The people against Ben Bernanke, some afraid of his reelection and some disagree with what the Fed done with the financial crisis, moved against him, enlarging the list of negative votes already revealed.

Democrat senators Barbara Boxer (California) and Russ Feingold (Wisconsin) said that will be against the reelection of Ben Bernanke, that should be before the January 31st.

Ben Bernanke needs 60 votes to ensure his reelection, due to the blocking system of the chamber. Donald Kohn, vicepresident of the Federal Reserve, would be the interim chief of the bank is reelection of of Ben Bernanke is postponed.

Other names that circulated as alternatives for the presidency of the Federal Reserve, include Kohn himself, Lawrence Summers, the economic assistant of the president, and Alan Blinder, the economist of the Princeton University.

The assessors of the White House and the Treasure, Rely on that Ben Bernanke will be confirmed by the senate, when will be accomplished five months since the president of the United States announced his nomination.

Before the vote of Harry Reid, democrat leader of the Senate, seemed to be doubting, but said that ‘”Although I will vote for, my support isn’t unconditional”

Some economists warned that rejecting Ben Bernanke could be seen as a threat to the independence of the Federal Reserve. So and the shares falled by 2%.

A “No” to Ben Bernanke could be seen by the markets as a sign of uncertainty. Chris Dodd, the president of the Banking comittee of the Senate, said that a ”No” to Ben Bernanke for answer t would leave the economy in a sharp fall.

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Ben Bernanke, president of the Federal reserve, that received this week the price of best person of the year from the magazine time, and is facing his reelection in the senate, is keeping his monetary policy steady.

The FED left yesterday the intervals of the interest rate low, between 0% and 0.25%, this level has been remaining the same this last year. Furthermore, stated that will leave interest rates exceptionally low during a low period of time.

Ben Bernanke is showing more optimism about the economic situation, mainly about the labor market. The information received from the Federal Open Market committee (FOMC) since the meeting in November suggest that the economic activity is improving and the destruction in the labor market has ended, the unemployment rate surprisingly decreased in November from 10.2% to 10%.

Ben Bernanke is being careful about it

However, Ben Bernanke wasn’t specially optimistic and showed caution, when adding that consumption growth is moderate although will continue being affected by unemployment , the credit restrictions and lower income growth. At the same time, Ben Bernanke said that companies are not likely to increase payrolls.

Other thing mentioned by Ben Bernanke, is the retreat of the emergency measures to help banks, the Fed wanted to remark that especial needs of liquidity will expire on February 1st 2010. This is any new date, but Ben Bernankeis telling that will now enlarge them when reiterating it.

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Ben Bernanke, has stated that the federal Reserve follows very closely the evolution of the dollar, after the considerable depreciation this currency suffered in the last weeks against other currencies. However, Bernanke, highlighted that the interest rates will continue low as the economy continues weak and the employment high. Ben Bernanke participated in a talk at the Economic Club of New York, where repeated the same speech about what will do the Federal reserve in the following months.

The president of the Federal Reserve, reiterated that although the economy has returned to the growth, ” the interest rates will continue low during a long period of time”.

In spit of the return to the positive data of the US GDP, the Unemployment is continuing to rise unstoppable, because the economic growth isn’t intense enough to create new jobs. Ben Bernanke remarked that there is still a problem with credit that ”together with the growing unemployment and a weak economy, will postpone the economic recovery”

Ben Bernanke is seeing big challenges for the incoming year, but signaled that ” some notable changes in the economic conditions, will turn the landscape of the monetary policy”. For the next year, Ben Bernanke sees ”a moderate growth, that will not be enough to reduce unemployment”, The current policy of the Federal reserve will be kept during some further months.

”We are watching the dollar from very close”

at the Same time, Ben Bernanke recognized that is worried with the dollar , He also stated that the Federal Reserve is following the value changes of the dollar and will design a policy to ”avoid risks” with the objective of promote employment and stability in prices”.

Ben Bernanke considers that the devaluation of the dollar as a mirror of the increase in prices of raw materials due to the improvement of the global economy.

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