Obama likely to extend Bernanke’s term

Ben Bernanke, chairman of the Federal Reserve, is set for renomination for a second four-year term say US officials. President Barack Obama is to make an announcement to that effect later in the day during a break from his holiday at Martha's Vineyard.

The nomination will need to be approved by the US senate. The approval will set at rest speculation over the future of Bernanke who is credited with having implemented aggressive policies to contain a recession during the global meltdown.

The 55-year-old former economics professor at Princeton University has also come in for much adverse comment from opponents for failing to prevent the financial downturn.

Bernanke will serve a second four-year term if his appointment is confirmed today. His current tenure ends on 31 January next year.

Senate banking committee chairman Christopher Dodd assuring support critical for confirmation, said president Barack Obama's nomination of Federal Reserve chairman Ben S Bernanke to a second term was probably the right decision.

Since 2007, Dodd has been critical of the Fed for failing to use it authority to set rules to protect consumers in mortgage lending. He has also questioned the Obama administration's decision in granting the Fed new powers as part of the regulatory overhaul.