NEW YORK ( TheStreet) -- Governor Mitt Romney has already told the world that, if elected president, he will not reappoint Federal Reserve Chairman Ben Bernanke when his current tenure comes to an end in January 2014. In my judgment, a President Romney should ask Bernanke to resign as his first act right after Inauguration Day.
Why wait and waste a year in the implementation of a new economic plan for our country?
After we hear Mitt Romney's acceptance speech tonight in Tampa, the focus will shift to Bernanke's speech in Jackson Hole, Wyo.
In an Aug. 22 letter to Congressman Darrell Issa, Bernanke explained that the Fed had room to ease monetary policy further to strengthen the economic recovery. He also defended Fed policy actions to date, explaining that two bond-buying "quantitative easing" programs known as QE1 and QE2 "helped promote a stronger recovery than otherwise would have occurred, and to forestall the possibility of a slide into deflation."
Many on Wall Street expect Bernanke to commit to another round of quantitative easing, QE3, but will he in his speech in Jackson Hole?
In my opinion, the Beige Book released Wednesday for the Sept. 12 Federal Open Market Committee meeting does not justify additional expansion of the Fed's balance sheet.
The highlights of the Beige Book include these facts: The U.S. economy is expanding gradually, manufacturing has softened on overseas economic weakness, credit conditions are improving, the housing market is experiencing a rise in sales and construction, and employment is holding steady for the most part. If you are a member of the FOMC, this backdrop means "don't panic."
I know that in his acceptance speech tonight Mitt Romney cannot get into Fed policy specifics, but he could say, "When I am elected the 45th president of the United States, my first change in economic policy will be to ask Fed Chief Ben Bernanke to resign. There are several qualified candidates who are better suited for the job."
The Romney economic recovery plan should target the Main Street economy by helping the housing market with a program that allows all borrowers who are current on their mortgage payments to refinance at low rates, even if they are underwater. Savers on Main Street, who have been hurt by nearly four years of extremely low rates on money market funds and bank CD's, should be given access to a interest rate close to the prime rate in the banking system. Putting money in the pockets of retirees and homeowners is a key to economic growth.