Note: Ben Bernanke has been named the Chairman of the Federal Reserve. We published a research report in early August suggesting that he would be the likely successor to Alan Greenspan. We are re-posting this report to remind you of what his policies are likely to be. All topics and statements came directly from his speeches.

Alan Greenspan is expected to retire as Chairman of the Federal Open Market Committee, the monetary policymaking body of the United States.

Alan Greenspan is considered by many to be the most important Central Banker in the world. His speeches can sometimes move the financial markets, not only in the United States, but also around the world. His “irrational exuberance” speech, as the height of the dot-com bubble approached comes to mind. His recent comments of a “conundrum” developing as short-term interest rates rose and long-term rates fell, is another.

For better or worse, he has guided this country through explosive economic growth. The challenges that face the next Chairman of the Federal Reserve will be every bit as daunting. The qualifications for the job will include at a minimum, a profound understanding of what makes the economy grow, have an ability to deal effectively with financial turmoil, be a consensus builder, and be politically perceptive.

There are three names heard most often for the appointment. One is Harvard Economics Professor Martin Feldstein; another is Columbia Business School Dean R. Glenn Hubbard and the third is former Federal Reserve member Ben Bernanke.

We believe the next Federal Reserve Chairman will be Ben Bernanke. He is a former Chairman of Economics at Princeton, and at 51 years old was recently chosen by President George W. Bush to be Chairman of his Council of Economic Advisors. We are prepared if any, on our short list, is eventually chosen, but we think it will be Bernanke.

In our estimation, it is of paramount importance to understand what policies and procedures, the next leader of the Federal Reserve is likely to follow. We have gone back and looked at most, if not all, of Bernanke’s speeches over the last few years. The next Chairman of the Federal Reserve will have enormous influence on monetary policy, and investment, in the United States, in all likelihood, for many years to come.

We present several topics that Ben Bernanke commented on that we find of interest. We do so with the exact words used in voicing his views. We add the date and name of the speech as a reference point for any additional research and historical accuracy.

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