The chairman of the Federal Reserve Board is the most important economic job in America. With President Obama and Congress unable to agree on major economic policies, the leadership of the Fed is more economically important than the president, the secretary of the Treasury, the House, and the Senate.
To some degree I agree with the view of libertarians such as former Rep. Ron Paul (R-Texas) that the Fed has become a de facto bailout agency for banks. I strongly disagree with Paul and others about this: The great economic folly is the failure of any policy to boldly create jobs, and the Fed needs to boldly act, but act in different ways than top-down monetary policy.
With Lawrence Summers no longer under consideration for the Fed job, Obama should nominate Janet Yellen to chair the Fed. Yellen is an internationally respected economist with a long track record of being proven right.