2 more Democrats reject a new term for Bernanke

WASHINGTON - Federal Reserve Chairman Ben S. Bernanke's prospects for a second term became shakier yesterday as two Senate Democrats, furious at his stewardship during the nation's economic crisis, said they would oppose him and Majority Leader Harry Reid was wavering.

While Bernanke is still a good bet to win confirmation - he got fresh support yesterday from President Obama, who nominated him for the reappointment - his performance since becoming chairman in early 2006 has become a rallying point for some lawmakers being bombarded by constituents frustrated about the economy's sluggish pace of recovery.

Bernanke, while navigating the economy through the worst slump since the Great Depression, has drawn fire from lawmakers for lax regulation before the financial crisis and for putting taxpayer dollars at risk through the rescues of Bear Stearns Cos. and American International Group Inc.

The 56-year-old former Princeton University professor was appointed to his current term, which ends Jan. 31, by President George W. Bush.

Reid, a Nevada Democrat, had been expected to act on the nomination this week, but no vote was scheduled and Reid was circumspect after meeting with Bernanke on Thursday.

"The American people expect our economic leaders to keep Wall Street honest and level the playing field for middle-class families," Reid said. "As the Senate prepares to take up chairman Bernanke's nomination, I look forward to hearing more from him about how he intends to address these issues."

Sen. Barbara Boxer (D., Calif.) said yesterday she would oppose a second term for Bernanke.

"It is time for a change," she said. "It is time for Main Street to have a champion at the Fed.

"Dr. Bernanke played a lead role in crafting the Bush administration's economic policies, which led to the current economic crisis," she said.

Also coming out against Bernanke yesterday was Sen. Russ Feingold (D., Wis.).

How deep the disaffection might be is unclear. Bernanke is still thought to have considerable support from members of both parties.

Boxer's and Feingold's statements, however, were more evidence that many senators are increasingly uneasy about a second term for him.