OAK BLUFFS , Massachusetts. (Press Release)--The following is a transcript of the news conference on Tuesday at the Oak Bluffs School Filing Center at which President Obama announced the reappointment of Ben Bernanke as chairman of the Federal Reserve Board. Bernanke, a member of the Jewish community, must go through the Senate confirmation process.

THE PRESIDENT: Good morning, everybody. I apologize for interrupting the relaxing that I told all of you to do, but I have an important announcement to make concerning the Federal Reserve.

The man next to me, Ben Bernanke, has led the Fed through one of the worst financial crises that this nation and the world has ever faced. As an expert on the causes of the Great Depression, I'm sure Ben never imagined that he would be part of a team responsible for preventing another. But because of his background, his temperament, his courage, and his creativity, that's exactly what he has helped to achieve. And that is why I am re-appointing him to another term as Chairman of the Federal Reserve.

Ben approached a financial system on the verge of collapse with calm and wisdom; with bold action and out-of-the-box thinking that has helped put the brakes on our economic freefall. Almost none of the decisions that he or any of us made have been easy. The actions we've taken to stabilize our financial system, to repair our credit markets, restructure our auto industry, and pass a recovery package have all been steps of necessity, not choice. They've faced plenty of critics, some of whom argued that we should stay the course or do nothing at all. But taken together, this "bold, persistent experimentation" has brought our economy back from the brink. They're steps that are working. Our recovery plan has put tax cuts in people's pockets, extended health care and unemployment insurance to those who have borne the brunt of this recession, and is continuing to save and create jobs that otherwise would have been lost. Our auto industry is showing signs of life. Business investment is showing signs of stabilizing. Our housing market and credit markets have been saved from collapse.

Of course, as I've said before, we are a long way away from completely healthy financial systems and a full economic recovery. And I will not let up until those Americans who are looking for jobs can find them; until qualified businesses, large and small, who need capital to grow can find loans at a rate they can afford; and until all responsible mortgage-holders can stay in their homes. That's why we need Ben Bernanke to continue the work he's doing, and that's why I've said that we cannot go back to an economy based on overleveraged banks, inflated profits, and maxed-out credit cards.

For even as we've taken steps to rescue our financial system and our economy, we must now work to rebuild a new foundation for growth and prosperity. We have to build an economy that works for every American, and one that leads the world in innovation, in investments, and in experts -- exports.

Part of that foundation has to be a financial regulatory system that ensures we never face a crisis like this again. We've already seen how lax enforcement and weak regulation can lead to enormous wealth for a few and enormous pain for everybody else. And that's why even though there is some resistance on Wall
Street from those who would prefer to keep things the way they are, we will pass the reforms necessary to protect consumers, investors, and the entire financial system. And we will continue to maintain a strong and independent Federal Reserve.

We will also keep working towards the reform of a health insurance system whose costs and discriminatory practices are bankrupting our families, our businesses, and our government. We will continue to build a clean energy economy that creates the jobs and industries of the future within our borders. And we will give our children and our workers the skills and training they need to compete for these jobs in the 21st century.

Much like the decisions we've made so far, the steps we take to build this new foundation will not be easy. Change never is. As Ben and I both know, it comes with debate and disagreement and resistance from those who prefer the status quo. And that's all right, because that's how democracy is supposed to work. But no matter how difficult change is, we will pursue it relentlessly because it is absolutely necessary to lift this country up and create an economy that leads to good jobs, broad growth, and a future our children can count on. That's what we're here to do, and that's what we will continue to do in the months ahead. So I want to congratulate Ben on the work that he's done so far, wish him continued success in the hard work that he has before him. Thank you so much, Ben.

CHAIRMAN BERNANKE: Thank you, Mr. President. I'd like to express my gratitude to President Obama for the confidence he's shown in me with this nomination, and for his unwavering support for a strong and independent Federal Reserve.

It has been a particular privilege for me to serve with the extraordinary colleagues throughout the Federal Reserve System. They have demonstrated remarkable resourcefulness, dedication, and stamina under trying conditions. Through the long nights and weekends and the time away from their families, they have never lost sight of the critical importance of the work of the Fed for the economic well-being of all Americans. I am deeply grateful for their efforts.

I especially want to thank my own family -- my wife Anna and our children, Joel and Alyssa. Without their support and sacrifice, I could not undertake this task.

The Federal Reserve, like other economic policymakers, has been challenged by the unprecedented events of the past few years. We have been bold or deliberate as circumstances demanded, but our objective remains constant: to restore a more stable financial and economic environment in which opportunity can again flourish and in which Americans' hard work and creativity can receive their proper rewards.

Mr. President, I commit today to you and to the American people that, if confirmed by the Senate, I will work to the utmost of my abilities -- with my colleagues at the Federal Reserve and alongside the Congress and the administration -- to help provide a solid foundation for growth and prosperity in an environment of price stability.

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Thank you, sir.

THE PRESIDENT: Thank you. Great job.

CHAIRMAN BERNANKE: Thank you.


Reaction in Congress is mixed

WASHINGTON, D.C. (SDJW)—News of President Obama's reappointment of Ben Bernanke as chairman of the Federal Reserve Board drew mixed response.

Congressman Barney Frank, (Democrat-Massachusetts) who heads the Financial Services Committee of the House of Representatives, sent out a written statement on Tuesday, which said: “I strongly support President Obama’s nomination of Ben Bernanke to a second term as Chairman of the Federal Reserve.  On the whole, Chairman Bernanke’s response to the unprecedented economic crisis has been wise and appropriate.  He has acted to provide needed liquidity to the economy and has demonstrated that he is fully ready to reverse course when economic conditions dictate.  President Obama’s decision to reappoint him now is one more example of his providing leadership the country, and the world, needs as well as addressing the economic situation he inherited.  By nominating Chairman Bernanke he is giving an example of the right kind of bipartisanship.”

From the U.S. Senate, which has the power to confirm or reject Bernanke for a second term, came these comments:

Senator Jim Bunning (Republican, Kentucky): "I am very disappointed that President Obama has decided to nominate Ben Bernanke to continue as Chairman of the Federal Reserve. This is just more evidence that the president has no clue what he is doing when it comes to the economy and solving America’s fiscal problems. President Obama missed an opportunity to break from the Greenspan legacy of easy money and lax regulation. Chairman Bernanke is part of the problem, not the solution. He’s been acting as an arm of the Treasury Department. He cranked up the printing presses to support President Obama’s out-of-control spending policies that have led to America’s mounting debt and will put the taxpayers trillions of dollars more in the red. Ben Bernanke lacks the independent voice we need in a Federal Reserve Chairman and has refused to provide any sort of transparency or accountability to the American people when it comes to who exactly the Fed is lending to and how much they are lending. Chairman Bernanke is partly responsible for the current fiscal crisis America is facing and I don’t think he deserves another term as Chairman of the Federal Reserve."

Senator Kent Conrad (Democrat-North Dakota), chairman of the Senate Budget Committee: "President Obama has made a wise decision in re-nominating Ben Bernanke for another term as Chairman of the Board of Governors of the Federal Reserve System. During the last year, the Federal Reserve has had to respond to the most severe financial crisis and the worst recession our nation has faced since the Great Depression. Under Chairman Bernanke’s leadership, the Fed has acted aggressively and creatively during these challenging economic times. While we are not yet out of the woods, the economy is showing some positive signs. Chairman Bernanke has proven he is the right choice to continue to lead the Fed. While fixing today’s economy is critical, we must also take the necessary steps to address our long-term budget imbalance. We are on an unsustainable fiscal path that threatens our nation’s economic security. Chairman Bernanke recognizes the urgent need to take action on our long-term fiscal position and to rein in the staggering growth of our national debt. With Chairman Bernanke at the helm, I remain optimistic that the Federal Reserve will provide sound monetary policy. But it will be the executive and legislative branches of the Federal government that will have to make the tough choices needed to reduce deficits and debt and encourage long-term economic growth and stability. I believe we can and must begin this process now.”

Senator Bob Corker (Republican, Tennessee): "Chairman Bernanke has earned the right to see this through and lead the Federal Reserve through these volatile times. I'm sure he hasn't made all the right calls, but he doesn't have a political cell in his body, and that's what you need in a Fed chairman. I believe he wakes up every day trying to focus on what ought to be done for the good of the country - not politics."


Senator Chris Dodd (Democrat, Connecticut), chairman of the Senate Banking Committee: "While I have had serious differences with the Federal Reserve over the past few years, I think reappointing Chairman Bernanke is probably the right choice. Chairman Bernanke was too slow to act during the early stages of the foreclosure crisis, but he ultimately demonstrated effective leadership and his reappointment sends the right signal to the markets."

Senator Richard Shelby (Republican, Alabama): Consideration of Chairman Bernanke’s nomination to serve a second term raises several important issues. The Banking Committee should carefully examine the impact of the Fed’s failures as a bank regulator, how such failures contributed to the financial crisis, and whether Chairman Bernanke’s performance as the chief regulator merits his reconfirmation. Second, we should closely examine the impact ad hoc decision-making had on the financial markets during the crisis. I remain convinced that a thoughtful, more deliberative approach would have led to a better result than the panicked response the regulators chose. Finally, we must be mindful that this crisis is not over. We must determine whether Chairman Bernanke has the strategic vision to chart the necessary course going forward and the resolve to stick to it, especially in light of today’s announcement that the national debt is projected to exceed 23 trillion dollars.” I look forward to working with Chairman Dodd to schedule a confirmation hearing to address these and other questions and concerns. There will be a thorough and comprehensive confirmation hearing.  I still have serious concerns about the Federal Reserve’s failure to protect consumers and I strongly believe these responsibilities should go to an independent consumer financial protection agency.  I expect many serious questions will be raised about the role of the Federal Reserve moving forward and what authorities it should and should not have."