Greg Robb, MarketWatch
WASHINGTON (MarketWatch) -- A firestorm of doubt that erupted late last week over whether lawmakers' support for Federal Reserve Chairman Ben Bernanke was eroding has been all but extinguished almost as quickly, with key members of the Senate saying it looked like he has the votes to be confirmed for a second four-year term.
"When it comes to Bernanke, the adults have taken over," said Greg Valliere, chief policy strategist at Potomac Research group.
Ben Bernanke, chairman of the Federal Reserve Board.
Bernanke could get up to 70 votes in the Senate, Valliere said, a number that would be comfortably above the 60 votes that he needs to overcome determined opposition.
Treasury prices headed lower, pushing yields up, with analysts citing less uncertainty about the reconfirmation of Federal Reserve Chairman Ben Bernanke.
Still, questions about Bernanke's nomination are likely to smolder until the actual vote takes place.
Analysts are waiting for Democrats to file a cloture motion. Under Senate rules, a cloture vote, requiring 60 senators to limit debate on the nomination, would come two calendar days after the motion is filed. That vote would be the key vote for Mr. Bernanke. A final vote, following up to 30 hours of debate, requires a simple majority.
Senate aides said they expect the cloture vote to take place later this week. Bernanke's term expires on Jan. 31.
White House spokesman Robert Gibbs said in the afternoon that he expects the Bernanke vote to take place later this week.
"It would send a signal of greater overall stability to have his nomination approved without political games and that is what we expect later this week," Gibbs said.
In the past, Fed chairmen have continued to chair the U.S. central bank on a temporary basis until the Senate acted on their confirmation.
AM Report: Bernanke's Vote BattleA majority of senators are undecided whether they will vote for Ben Bernanke's second term, prompting a charm offensive from White House officials to gather votes for the Fed chairman, the News Hub panel reports.
Opposition to Bernanke in the Senate has interestingly come from its most conservative and most liberal members.
Criticism has centered on the Fed's decision not to crack down on risky mortgage lending practices that fueled the bubble in the housing market. Many senators also complain that the Fed is too secretive and has looked after the interest of Wall Street at the expense of Main Street.
"Bernanke and his predecessor gave the Wall Street boys a green light to wreck the economy," said Dean Baker, co-director of the Center for Economic and Policy Research.
Bittersweet victory
Brian Gardner, an analyst at Keefe, Bruyette & Woods, said senators are trying to figure out how they can oppose Bernanke's reconfirmation, but not kill it.
Senators who do not have to run for reelection this year or who are retiring will be leaned on to support Bernanke. |
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