Presidents rarely replace FED heads before they are ready to retire. it was set up to be a non partisan group. If a new Admin picked a new FED every time it would be tough to work that way.
The FED has one job, and one job only. Steady growth with contained inflation. Obviously those goals are at odds with each other now.
BUT, this was of Greenspan's making, and everyone in Washington knows it. Bernanke has his hands tied. he can either put the breaks on inflation and the dollar drop, which send the economy into a deep recession, or try to get both goals limping along as long as possible. He chose the latter unfortunately. I wish they would just get it over with and have the damn recession to clean out the excess. We have cyclical recessions for a reason.
I am afraid we may try to do the managed growth thing at all costs and go into a ten year spiral like Japan did.
