Obama: Fed chair will prevent asset bubbles, focus on jobs

WASHINGTON Wed Oct 2, 2013 5:11pm EDT

U.S. President Barack Obama delivers remarks alongside Americans (unseen) the White House says will benefit from the opening of health insurance marketplaces under the Affordable Care Act, in the Rose Garden of the White House in Washington, October 1, 2013. REUTERS/Larry Downing

U.S. President Barack Obama delivers remarks alongside Americans (unseen) the White House says will benefit from the opening of health insurance marketplaces under the Affordable Care Act, in the Rose Garden of the White House in Washington, October 1, 2013.

Credit: Reuters/Larry Downing

WASHINGTON (Reuters) - President Barack Obama said on Wednesday the person he selects to head the Federal Reserve when Chairman Ben Bernanke's term ends in January will prevent asset bubbles from forming and try to bring down the unemployment rate.

"They're going to be making sure that they keep an eye on inflation, that they're not encouraging some of the bubbles that we've seen in our economy that have resulted in busts," Obama said in an interview on CNBC.

"But they're also going to stay focused on the fact that our unemployment rate is still too high."

The president said the budget standoff that has led to a government shutdown has not hindered the selection process.

"Ben Bernanke's still there and he's doing a fine job," Obama said. "This is one of the most important appointments that I make, other than the Supreme Court. So, no, the shutdown's not slowing down the vetting."

He said the person he would appoint would "reflect the Fed's dual mandate." The Fed is charged by Congress with both keeping inflation steady and low and ensuring maximum employment.

Current Vice Chair Janet Yellen, a veteran of the Fed system, is the front-runner to replace Bernanke in January, a White House official has said.

(Reporting By Mark Felsenthal; Editing by Sandra Maler and Stacey Joyce)

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Comments (2)
wesatch wrote:
The Fed chairman ………..will prevent asset bubbles from forming and try to bring down the unemployment rate…………

Hahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha!

What planet are you on Prez? You need to sign up for some Obamacare. Oh forgot, you are exempt like congress and multinational corps.

And continue to hose savers with 0 % interest rates so corporations and banks can amass huge sums of cash and borrow for free.

The Fed has never created one job, period. Obama is so transparent.

Oct 02, 2013 5:52pm EDT  --  Report as abuse
Mott wrote:
Good one.

Job creation/return will start with restoring local manufacturing by forcing VAT on imports and the like. Unless adminstration is open to this, it’ll be hard to make meaningful difference in jobs other than the natural trending.

Better yet, task Fed to reduce debt – and I think they’ll succeed at this given their expertise in this area.

Oct 02, 2013 6:17pm EDT  --  Report as abuse
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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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