White House adviser Ben Bernanke won Senate approval today to assume one of the world's most influential economic posts, chairman of the US Federal Reserve, just after the central bank raised interest rates a 14th straight time.
In 19 minutes that marked a new era at the Fed, Capitol Hill lawmakers approved Mr Bernanke by voice vote to succeed retiring Alan Greenspan and policy-makers lifted short-term rates a quarter percentage point to 4.5 per cent.
It was the 149th and final policy meeting for the outgoing Fed chief after 18-1/2 years in charge. Mr Bernanke will be sworn in for a renewable four-year term as chairman and a 14-year board term at a private ceremony at the Fed today.
"I know this institution will go on doing extraordinary things, and I will look on from the sidelines and cheer," Mr Greenspan told 180 guests at a farewell luncheon of grilled salmon and chocolate cake after last night's rate meeting.
Global financial markets will watch closely to assess what changes Mr Bernanke, a former Fed governor, will make at the central bank now he has the top job.
Treasury bond prices fell after the meeting on the prospect the Fed has not finished a cycle that began in mid-2004, but later recovered. The dollar shook off early weakness while stocks closed lower.
Mr Bernanke's nomination was so noncontroversial that some senators were quoted in newspapers expressing surprise that hearings on it had already been held.
"Ben has provided wise counsel and good advice as a member of my economic team, and he will serve our nation with great distinction," President George W. Bush, who has a history of appointing insiders to top jobs, said in a statement.US Federal Reserve enters Mr Bernanke era