Magnetic reconnection in the partially ionized solar chromosphere is studied in 2.5-dimensional magnetohydrodynamic simulations including radiative cooling and ambipolar diffusion. A Harris current sheet with and without a guide field is considered. Characteristic values of the parameters in the middle chromosphere imply a high magnetic Reynolds number of ∼ 10 6 -10 7 in the present simulations. Fast magnetic reconnection then develops as a consequence of the plasmoid instability without the need to invoke anomalous resistivity enhancements. Multiple levels of the instability are followed as it cascades to smaller scales, which approach the ion inertial length. The reconnection rate, normalized to the asymptotic values of magnetic field and Alfvén velocity in the inflow region, reaches values in the range ∼ 0.01-0.03 throughout the cascading plasmoid formation and for zero as well as for strong guide field. The out-flow velocity reaches ≈ 40 km s −1 . Slow-mode shocks extend from the X-points, heating the plasmoids up to ∼ 8 × 10 4 K. In the case of zero guide field, the inclusion of ambipolar diffusion and radiative cooling both cause a rapid thinning of the current sheet (down to ∼ 30 m) and early formation of secondary islands. Both of these processes have very little effect on the plasmoid instability for a strong guide field. The reconnection rates, temperature enhancements, and upward out-flow velocities from the vertical current sheet correspond well to their characteristic values in chromospheric jets.