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Greenspan's Legacy is Now Bernanke's Challenge to Overcome

Credit Pacific Service Union By Freddie Mooche

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Credit First Service Union (AXcess News) Washington - Tuesday, the Federal Reserve will meet to decide whether to raise short-term interest rates and the meeting will mark the last time Alan Greenspan will address the Fed board. After 18 and half years as the Federal Reserve's Chairman, Alan Greenspan will retire, leaving behind a legacy that Ben Bernanke will have to overcome if he is to gain the confidence of Wall Street.

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Card Credit Mobile Service Whether or not to raise short-term interest rates, after nearly two years of the Central Bank's increases will be his first decision as Fed Chairman and all eyes will be on Bernanke to see what direction he will take.

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Card Credit Discover Service Economists expect Greenspan to recommend another rate hike Tuesday. Bernanke won't inaugurate at the Fed until March 28th and when hechairs that meeting he will have more than interest rates to consider.

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Credit Public Service Union Bernanke faces an unsure housing market, that if it crashes, the Fed will have to devise a plan to manage it.

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Card Credit Processing Service The trade deficit is a major hurtle facing Bernanke, though he has gone on record as saying that the trade and budget deficit needs to be trimmed. China, Japan and Great Britain will be watching Bernanke's moves as they are the largest holders of US Treasuries.

Center Credit Service Union Foreign investors could severely damage the US markets if they were to unload treasuries so Bernanke will have to pay close attention to how the Fed is perceived by foreign investors after he becomes Fed Chief.

Card Credit Service Wireless At stake is the value of the dollar. If the US currency price were to decline it would affect foreign goods imported into the US as well as exported goods be shipped overseas, so Bernanke is going to have to live up to Greenspan's legacy of maintaining market confidence in the US economy.

Credit Security Service Union Energy prices are also at issue to the Fed. Bernanke will have to use his own economic crystal ball to peer into the future of the United States' energy issues to foresee how the price of oil and natural gas will affect businesses and trade. If consumer spending is curbed due to higher energy costs it touches on the entire economy and will affect the trade deficit. On the other hand, if energy prices decline then consumer spending could increase and that would spiral up inflation requiring Central Bank interest rate tightening.

Credit Report Service But Bernanke is not without Fed experience, having served as a Fed Governor with Greenspan for nearly three years. Following his stint at the Federal Reserve, Bernanke went on to become a White House economic advisor before being nominated as Fed Chairman by President Bush. Bernanke still awaits approval by the Senate, which is undoubtedly going through as both Republicans and Democrats alike accept Ben Bernanke as a good choice in replacing Greenspan.

Blogspot Com Christian Greenspan, 79, had skill at maneuvering through political circles in both Republican and Democrat administrations. Bernanke, 52, will have to learn those skills as he goes along.

Christian Counseling Credit For Bernanke, the legacy of confidence that Greenspan built up from both Wall Street and politicians will be his largest challenge as the new chairman of the Federal Reserve.

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