Bernanke on the Campaign Trail: Does the Fed Chief Deserve Reappointment?

Starting Tuesday, the meeting will air this week in three installments on PBS's "The NewsHour with Jim Lehrer," but both the content and the intention of the campaign-style event are clear: Fearing a lack of support in the Obama Administration, Bernanke is taking his case for reappointment directly to the American people. (We don't get to vote on the Fed chairman but having public support can't hurt his case.) 

Bernanke's current term as Fed chairman expires in January and there's a lot of chatter in Washington D.C. he may not be reappointed by President Obama. Bernanke has always believed in a more open Fed, but his public appearances - in addition to the PBS event, he was interviewed on "60 Minutes" last March and penned an op-ed in The WSJ last week - certainly have the feel of someone actively campaigning to save his job.

In terms of content, the big headlines from the PBS event include:

• Bernanke being "disgusted" at having to bail out firms like AIG that were "talking wild bets," but defending those actions as absolutely necessary to head off economic Armageddon: "I was not going to be the Federal Reserve chairman who presided over the second Great Depression," Bernanke said.
• Bernanke reiterated the Fed's forecast that unemployment will lag the economy's recovery and that it will be a "few years" before the economy is growing strongly again. "It will take some patience," he said.
• The Fed chairman admitted being "late in addressing the subprime lending problem," and stated flatly: "I'm answerable to the American people."

Both his openness and willingness to admit error puts Bernanke in stark contrast to his predecessor Alan Greenspan, who was famously obtuse and rarely (if ever) willing to admit to a mistake (even now).

That's key because nobody is saying Bernanke is perfect, including those who support Bernanke's reappointment, such as NYU's Nouriel Roubini. But those who are calling for him to be replaced aren't focusing on who might replace him: Obama economic advisor Larry Summers is often cited as a leading candidate and if the choice is between Bernanke and Summers, I'd much prefer the devil I know at the helm of the Fed.

But what do you think? Should Bernanke be reappointed? If not, who should replace him?