In 2006, Ben Bernanke inherited an economy that Fed chairs do not dream of. There was an economic slowdown, with job losses, lagging homes sales and increasing foreign debt. With growing fears of inflation, Bernanke cut interest rates again and again. Then there was an epidemic of bad loans. Now, Bernanke and Treasury Secretary Henry Paulson are taking their biggest steps to regulate a problematic economy. What is it about this former Goldman-Sachs CEO that makes him ready to take on the next big challenge, and so powerful?

Sudeep Reddy, Wall Street Journal economics reporter