Summers drops out of race to run Federal Reserve

BY DANIEL MASSARI
BUSINESS WRITER

In a press meeting Sunday, President Obama said that the former Treasury secretary and possible Federal Reserve chairman candidate Larry Summers has withdrawn his name from contention.

“Earlier today, I spoke with Larry Summers and accepted his decision to withdraw his name from consideration for chairman of the Federal Reserve. Larry was a critical member of my team as we faced down the worst economic crisis since the Great Depression, and it was in no small part because of his expertise, wisdom and leadership that we wrestled the economy back to growth and made the kind of progress we are seeing today. I will always be grateful to Larry for his tireless work and service on behalf of his country, and I look forward to continuing to seek his guidance and counsel in the future,” Obama said to the press.

It appears that Summers has withdrawn his name because of opposition from the Senate and recent scrutiny of his past policy work at the Treasury. Four senators on the Banking Committee, which must confirm the president’s nomination, have already stated that they would not vote for Summers.

Though Janet Yellen, the current Fed vice chair, appears to be Obama’s first choice, sources close to the president have also said that possible candidates include former Treasury Secretary Timothy Geithner, former Chairman of TIAA-CREF Roger Ferguson, and former Fed Vice Chairman Donald Kohn. Look in the coming weeks for the big announcement.

Contact the writer: daniel.massari@scranton.edu

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