Ben Bernanke was formally sworn in for a second four-year term as chairman of the Board of Governors of the Federal Reserve System on Wednesday.

Bernanke officially began his second term on February 1 following his confirmation by the Senate on January 28 and a hearing on December 3 by the Senate Committee on Banking, Housing and Urban Affairs. He first took office as chairman on February 1, 2006. His new term as chairman ends January 31, 2014, and his 14-year term as a member of the Board ends on January 31, 2020.

At the ceremony, Bernanke defended the Fed’s record during the financial crisis, saying, “The past four years have been an extraordinary time. In many respects, this period has shown this institution at its finest, as we moved rapidly, forcefully, and creatively to confront the deepest financial crisis since the Great Depression and help prevent a looming economic collapse.”

Looking ahead, he said that the Fed, and the country, face “enormous challenges”.

“On the economic front, the resumption of growth in the nation’s output of goods and services is encouraging. But far too many people remain unemployed, foreclosures continue at record rates, and bank credit continues to contract,” he noted.

“… the crisis revealed weaknesses and gaps in the regulation and supervision of financial institutions and financial markets,” he allowed, adding that the Fed is restructuring its supervisory framework, “to incorporate a more systemic, multidisciplinary perspective.”

“We are engaging with international colleagues to develop tough, comprehensive regulations to promote the safety and soundness of financial institutions, and we have developed and implemented strong new protections for consumers,” he added. “We will continue to work with the Congress to develop an effective, comprehensive reform of financial regulation. As we move forward, we must continue to do all that can be done to ensure that our economy is never again devastated by a financial collapse.”

IE