Skies darken for Bernanke bid
Victoria McGrane

Six Republicans and one Democrat on the Senate Banking Committee voted Thursday against Ben Bernanke’s nomination to a second four-year term as chairman of the Federal Reserve — signaling to some Fed watchers that President Barack Obama’s pick could be in more trouble than previously thought.

“It’s not the foregone conclusion it was a couple of weeks ago,” said Brian Gardner, a bank analyst with Keefe, Bruyette & Woods.

Americans are unhappy with bailouts, so Congress catches the populist fervor and is ripping Bernanke. It’s great for political capital now, but I’m not sure removing the Fed chairman is the best move for Republicans. Whomever Obama would nominate post-Bernanke would almost certainly be a large fiscal spending Keynesian ideologue.