Ed Driscoll

Atlas' Successor

Alan Greenspan is scheduled to retire on January 31, after serving 18 years as chairman of the Federal Reserve. Larry Kudlow sounds happy about the man President Bush nominated today to be his successor:

CEA chair and former Fed governor Ben Bernanke is about to be nominated to succeed Alan Greenspan as Chairman of the Federal Reserve Board.

In my view it is a good choice. Though Mr. Bernanke is not a hardcore advocate of the price rule, he does favor an inflation target, which is the second best option. Noteworthy is the fact that in recent speeches he has emphasized the slow and steady 2 percent zone of core inflation and inflation less energy. So he is not as militant as some of the crazed Fed presidents.

Bernanke does watch financial market indicators such as the inflation-adjusted Treasury bond and the TIPS spread.

Bernanke will also support an extension of Bush