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.