At a time when political tempers are running high and world markets remain jittery, Barack Obama has made the right decision to keep Ben Bernanke on for a second term as chairman of the Federal Reserve Board. The Senate must now proceed with hearings to remove the remaining uncertainty.
Mr Bernanke's scholarship and experience prepare him perfectly for the choices facing the Fed. He did not grasp the scale of the subprime problem early enough, but his handling of the crisis since it broke has been decisive and his judgment reassuringly pragmatic. He is the right person for the job.
If confirmed, he faces two major challenges. The first is obvious: get the US out of the recession and into sustained recovery. The Fed must continue to soften the impact of banks' deleveraging while keeping future inflation expectations in check. Mr Bernanke makes clear that money will remain loose for now. He also takes care to explain that an exit strategy exists but now is not the time to launch it.