President Barack Obama is nominating Ben Bernanke for a second term as chairman of the Federal Reserve.

Obama made the announcement while vacationing on the island of Martha's Vineyard off the coast of Massachusetts.

Bernanke has been widely credited with taking quick, aggressive action last year to avoid an economic catastrophe after the meltdown in the credit markets.

His strategy of using unconventional lending programs to stabilize the financial markets slowed the recession and prevented a total lockdown for creditors.
    
"Wall Street can rest a little easier now," said Chris Rupkey, an economist at the Bank of Tokyo-Mitsubishi. "Having a new chairman come in at this late date would put the Fed-engineered solution to both the recovery and the exit strategy at risk."

Source: The Associated Press