Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I rise this morning in support of the nominations of Benjamin S. Bernanke to be a member and the Chairman of the Board of Governors of…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I rise this morning in support of the nominations of Benjamin S. Bernanke to be a member and the Chairman of the Board of Governors of the Federal Reserve System.
In November of 2005, I chaired our Banking Committee hearing regarding this nomination, and we heard from Dr. Bernanke on a wide range of economic issues. In reporting this nomination to the floor for consideration, I would reiterate that President Bush has made a superb appointment in selecting Dr. Ben Bernanke for this position.
This nomination is of great importance to our Nation and our economy. As the central bank, the Federal Reserve has the responsibility for conducting monetary policy to maintain maximum employment, stable prices, and moderate long-term interest rates. As the U.S. continues to lead the world economy, sound stewardship of the Federal Reserve also affects the global marketplace.
The Chairman of the Federal Reserve would certainly have a big enough job to do if he were tasked only with serving as head of the central bank of the United States. But his job also entails the supervision and regulation of financial institutions, including some of the largest financial entities in the world. The Federal Reserve must ensure the safety and soundness of these institutions and monitor any potential for systemic risk. The American consumer also counts upon the Federal Reserve to foster the fair and efficient delivery of services to customers of financial institutions.
The Federal Reserve also plays a major role in operating the Nation's payment system. Evolving technology continues to change the way we pay for goods and services. The Federal Reserve must oversee these innovations and adaptations and make certain the U.S. payment system is effective, reliable, and safe.
For nearly two decades, it has been impossible to raise the topic of the Federal Reserve without also mentioning Alan Greenspan, and I will do so briefly here today. Alan Greenspan has been the face and the voice of the Federal Reserve for over 18 years. Today he is chairing his last session of the Federal Open Market Committee.
Chairman Greenspan has made a big impression on all of us--here in Congress, our Nation, and across the world. During his tenure, the U.S. economy and our financial system have withstood a number of significant shocks, including the stock market crash of 1987, the Asian debt crisis which affected capital globally, and, of course, the catastrophic effects of 9/11, which hit the heart of the U.S. financial industry and which affected all of us and our economy in many ways.
Chairman Greenspan also oversaw the longest economic expansion in American history. Because of our economic success, even in the face of great challenges, some consider Chairman Greenspan to be the greatest central banker of all time. I commend Chairman Greenspan for his exemplary service and dedication to our country.
Now it is time for a transition at the Federal Reserve System. As I noted, this will be the first time in nearly two decades that the Congress has had a new nominee before us for consideration. Certainly stepping into Mr. Greenspan's shoes will be a tremendous challenge.
While it may seem a daunting task to follow as distinguished a chairman as Alan Greenspan, we should be mindful of two things.
First, in 1987, many observers wondered whether an economist named Alan Greenspan could successfully follow in the wake of the vaunted Paul Volcker as Chairman of the Federal Reserve. Each person who sits in the Chairman's seat has the opportunity to make that position his own and to become a leader in his own right. That is what has been done, in large part, due to the caliber of the men who Presidents of the United States have chosen for the task.
Second, I would also note that many individuals who hold diverse viewpoints on other topics are in agreement that President Bush has selected the best possible candidate to serve as the next Federal Reserve Chairman. Indeed, Dr. Ben Bernanke may well be the finest monetary economist of his generation. He has both a distinguished career in academia as well as in the policymaking arena.
The list of his experience and achievements is long. I do not have enough time this morning to mention all of them, but I want to mention some of his most important qualifications because his nomination requires someone with the rare expertise that Dr. Bernanke has acquired.
As he moves on to become the Federal Reserve Chairman, Dr. Bernanke will be completing his duties as Chairman of the President's Council of Economic Advisers. During his service at the CEA, Dr. Bernanke provided the President and our Nation with sound economic advice on a variety of significant policy issues. But before his service at the Council of Economic Advisers, Dr. Bernanke served with great distinction as a member of the Board of Governors of the Federal Reserve System from 2002 to 2005. This experience gives him an inside knowledge of the Federal Reserve and the financial markets.
Dr. Bernanke has earned the tremendous respect and confidence of policymakers in this country as well as around the world. He previously served as chair of the economics department at Princeton University, and prior to that tenure he was an associate professor of economics at the Graduate School of Business at Stanford University. He also served as a visiting professor of economics at New York University and at the Massachusetts Institute of Technology. He was the director of the Monetary Economics Program of the National Bureau of Economic Research. In 1975, he received his B.A. in economics from Harvard University, where he graduated with honors. In 1979, he received his Ph.D. in economics from MIT.
It will be difficult to follow the long and successful tenure of Alan Greenspan. Dr. Bernanke is an excellent choice for the job. Few individuals have this mix of practical and academic experience, especially his prior experience at the Federal Reserve. The Banking Committee reviewed this nomination thoroughly, and we believe Dr. Bernanke will serve this country well at the helm of the Federal Reserve.
I urge my colleagues to support this nomination.
I yield the floor.
Mr. President, how much time do I have?
Does the Senator wish to continue?
Mr. President, I will be glad to yield to the Senator from North Dakota some of my time.
Mr. President, I ask unanimous consent the order for the quorum call be rescinded.
Mr. President, I reserve the remainder of my time at this point.