Senate to take up Bernanke nomination Thursday

WASHINGTON (Reuters) - The U.S. Senate on Tuesday moved to clear the way to confirm Ben Bernanke to a second term as Federal Reserve chairman, setting a procedural vote for Thursday in a sign that the needed votes were now secured.

President Barack Obama and Senate Democrats scrambled to drum up backing for Bernanke after a Republican won a stunning upset in a Massachusetts Senate race last week, largely because of voter anger about the economy.

Bernanke was in jeopardy of becoming the fall guy, and sudden doubts about his confirmation roiled financial markets. But a push by the White House and Senate allies slowly coaxed undecided senators into the Fed chairman''s column.

Senate Majority Leader Harry Reid set a vote for Thursday to try to end a procedural roadblock put in place by Bernanke opponents.

Both Democrats and Republicans believe Bernanke now has the 60 votes to needed to overcome the hurdle, which would pave the way for a final confirmation vote, perhaps also on Thursday.

The votes will come with time running out for Bernanke, whose first four-year term as Fed chief expires on Sunday. Fed Vice Chairman Donald Kohn was poised to take the reins of the central bank if needed.

While the decision to move to a vote suggests Bernanke now has enough support, he looks certain to draw a record number of no votes for a nominee tapped to head the U.S. central bank.

A Reuters poll found 47 senators ready to back Bernanke, with 19 standing in opposition. Thirty-four senators were undecided.

BAILOUT ANGER

Bernanke''s confirmation had seemed assured until the Massachusetts election reshaped the political calculus.

Public ire at the financial bailouts the Fed helped lead even as the U.S. unemployment rate was climbing into in double digits has made a potent political brew for senators facing re-election in November and undercut Bernanke''s support.

When the Senate takes up the nomination, there will be an hour of debate before the procedural vote. Clearing that hurdle would pave the way for up to 30 hours of further debate before a final vote.