How Will Bernanke Fit Into Obama’s Economic Plans?

As President-elect Barack Obama continues to name members of his economic team, it raises the question of where Federal Reserve Chairman Ben Bernanke fits into the plan.

Under normal circumstances, it would probably be premature for Obama to say whether he will nominate Bernanke to a second term when his current one expires in January 2010. Obama himself has not commented on Bernanke’s future since being elected, nor has his transition team.

But given the severity of the financial crisis—as well as media reports and speculation about a possible successor—there is growing talk about why Bernanke might not be headed for a second term and what it might mean for the markets.

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A lot of that has to do with Bernanke’s job performance, the connection between party affiliation and appointments and tendency to clean house during tough times.

“Bernanke finds himself in a situation where he risks being personified as a cause of crisis as opposed to being a captain who got caught up in a storm,” says Eric Dezenhall,founder of Dezenhall Resources, a damage control expert who’s represented CEOs facing criminal prosecution and corporate crises.

At the same time, the president-elect also needs some measure of continuity and a key player who spans the old and new administrations.

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