Geithner, Bernanke Face Increasingly Impatient Crowds

Has the honeymoon ended for Ben Bernanke and Timothy Geithner?

The chairman of the Federal Reserve Board and the Treasury Secretary both endured strong rebukes yesterday, as more lawmakers called on Geithner to resign while a proposed amendment could severely limit the powers of the Fed, an amendment that Bernanke has been fighting off for some time.

Democrats gave cover to the embattled pair, as Sen. Chuck Schumer rushed to the defense of Geithner, while Rep. Barney Frank pulled off the table a bill that would increase the amount of financial regulation after Rep. Ron Paul attached his amendment.

While Bernanke was recently re-appointed to a new term as chairman of the Federal Reserve, it appears as though Congress is growing more impatient by the day as the unemployment rate increases, the mortgage market remains in shambles, and the chance of a full economic recovery in 2010 fades.

Economic catastrophe may have been headed off at the pass last year by these two, among others, but in the world of “what have you done for me lately,” that might not be enough on which to hang one’s hat. Heck, even a Democrat has called for Geithner’s resignation.

Democrats lost two of three races earlier this month, and mid-term elections are now less than a year away. If the economy continues to swoon, President Obama is going to have to start making some hard decisions, soon, about how to keep Democrats in power beyond the current Congressional session.

It’s usually never a good idea to change coaches in mid-season, but the public is getting antsy. Sometimes, a coaching decision is made more to placate fans than to help the team win. It’s hard to say that the administration is at that point today, but it is clearly visible on the horizon. At what point do senior government officials have to start falling on swords to preserve a Democratic majority in Congress?

Regardless of the results, as calls for his resignation rise, Geithner is the most prominent appointment that has been involved in dealing with the economic crisis from the get-go. He has to be feeling the pressure.