President Barack Obama said he renominated Ben Bernanke for another term as chairman of the Federal Reserve because of Bernanke’s role in helping the nation avoid another Great Depression.

“Ben approached a financial system on the verge of collapse with calm and wisdom; with bold action and out-of-the-box thinking that has helped put the brakes on our economic freefall,” Obama said Tuesday morning.

“Almost none of the decisions he or any of us made have been easy,” he said. “The actions we have taken to stabilize our financial system, repair our credit markets, restructure our auto industry, and pass a recovery package have all been steps of necessity, not choice.”

The president, who interrupted his vacation on Martha’s Vineyard to make the announcement, added that “we are a long way from a completely healthy financial system and a full economic recovery. And I will not let up until those Americans who are looking for jobs can find them; until qualified businesses, large and small, who need capital to grow, can find loans at a rate they can afford; and until all responsible mortgage holders can stay in their homes.

“That is why we need Ben to continue the work that he’s doing,” Obama said.

The president also used the announcement to make the case for financial regulatory reform, health care reform and clean energy development.

Bernanke thanked Obama for “the confidence he has shown in me” and for “his unwavering support for a strong and independent Federal Reserve.” He also thanked his “extraordinary colleagues” at the Fed, who “have demonstrated remarkable resourcefulness, dedication and stamina under trying conditions.”

“We have been bold or deliberate as circumstances demanded, but our objective remains constant: to restore a more stable economic and financial environment in which opportunity can again flourish, and in which Americans’ hard work and creativity can receive their proper rewards,” Bernanke said.

Bernanke must be confirmed by the Senate. While he can expect some criticism over the Fed’s failure to prevent a severe recession, most senators likely will vote for his confirmation.

Senate Banking Committee Chairman Chris Dodd, a Connecticut Democrat, said he has had “serious differences” with the Fed in recent years, but reappointing Bernanke “is probably the right choice.”

“Chairman Bernanke was too slow to act during the early stages of the foreclosure crisis, but he ultimately demonstrated effective leadership, and his reappointment sends the right signal to the markets.”

Dodd promised “a thorough and comprehensive confirmation hearing” for Bernanke, whom he faulted for not doing enough to protect consumers.

“I strongly believe these responsibilities should go to an independent consumer financial protection agency,” Dodd said. “I expect many serious questions will be raised about the role for the Federal Reserve moving forward and what authorities it should and should not have.”