Some Disturbing News About Chip Reid

Chip Reid, the Chief White House Correspondent for CBS News, told Imus that current Federal Reserve Chairman Ben Bernanke will likely keep his job, despite threats from Republicans and some Democrats not to reconfirm him when his term comes up soon.

"It would send a message of instability to Washington," said Reid. "I think, in the end, people will be afraid to shake things up."

Though Bernanke was Fed Chairman at the time of the 2008 economic collapse, he is still viewed as having helped the U.S. avoid complete and total financial implosion. The White House has "some comfort factor" that he'll be reconfirmed, said Reid, but is counting on fear to drive the vote in Bernanke's favor.

As for other members of President Obama's economic team, like Advisor Larry Summers and Treasury Secretary Tim Geithner, Reid said there is continued "unease" about both men, but that Obama is satisfied with the jobs they've done.

"Behind the scenes, they both still have a lot of control," said Reid.

The financial arm of the Obama administration, said Reid, is "looking for ways to grab this populist tone" evidenced in last week's Republican victory in Massachusetts. But killing Wall Street, as Obama seems fixed to do, may not be the solution.

"After giving a speech like that, the stock market goes down," said Reid, referring to plans Obama announced last week to tax the hell out of the 50 biggest U.S. banks, and to impose other restrictions on Wall Street. "You can't just beat up on Wall Street constantly for political purposes and expect nothing but good things to happen."

The New York Times Op-Ed Columnist Frank Rich suggested in his column yesterday that the Democrats "reboot," which is a common sentiment of late. "A lot people are saying he should reboot, but nobody agrees on how you reboot," Reid pointed out.

It is nearly impossible, he added, for Obama to do anything that will make a huge difference at this point in time. "He could go out there and talk about the economy everyday, but there's just not that much a President can do to create jobs," said Reid.

One job Obama might see fit to create is the role of Chip Reid's electronic guru, as we learned this morning that Reid rocks out to Allman Brothers cassette tapes in his car.

"They probably are available on CD," said Imus. "But why go there?"

-Julie Kanfer