Larry Summers has withdrawn his name from consideration for the Federal Reserve Chairman position. Current Fed chair Ben Bernanke is expected to step away when his term ends in January, and Summers was considered by many to be the favorite to replace him.
Summers, an economic adviser for the White House and former Treasury secretary, was favored by President Obama for the job until his withdrawal among uproar from women’s groups, liberal Democrats and other organizations who opposed his likely nomination. Summers called the president on Sunday to inform him of his decision, saying the process to fill the chairman position would be bitter and against the interests of the nation’s recovery process.
Controversy has followed Summers for years dating back to the Clinton administration, when he supported regulating sections of the banking sector. In 2005, his comments on the abilities of women in math and science drew dissension as well. However, many have credited Summers for assisting Obama during the current financial crisis in the economy.
With Summers out of the picture, Janet Yellen, Federal Reserve vice chair, is the assumed favorite for the position, but Obama could open the position to a wider range of candidates. Yellen’s extensive Fed experience and economic views are in line with current monetary policies. If Yellen is appointed, she would be the first woman in the Federal Reserve’s 100-year history to lead the organization.
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