Larry Summers Withdraws From Fed Chairman Consideration, Futures Soar
Ultimate insider Larry Summers, President Obama’s favorite for Fed chairman, withdrew his name from consideration over the weekend. Summers was considered a brilliant economist by many and perceived as more hawkish regarding monetary policy than co-favorite for the job Janet Yellen.
The news on Summers sent stock market futures soaring indicating a Dow up nearly 200 points when it opens.
In 1999 Summers endorsed the Gramm-Leach-Bliley Act, a key to financial de-regulation, which removed the separation between investment and commercial banks, saying “With this bill, the American financial system takes a major step forward towards the 21st Century.”
When George Stephanopoulos asked Summers about the financial crisis in an ABC interview on March 15, 2009, Summers replied that “there are a lot of terrible things that have happened in the last eighteen months, but what’s happened at A.I.G. … the way it was not regulated, the way no one was watching … is outrageous.”
Below is Summers’ letter whereby he withdraws from consideration:
Dear Mr. President,
I am writing to withdraw my name for consideration to be Chairman of the Federal Reserve.
It has been a privilege to work with you since the beginning of your Administration as you led the nation through a severe recession into a sustained economic recovery built on policies to promote employment and strengthen the middle class.
This is a complex moment in our national life. I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interests of the Federal Reserve, the Administration, or ultimately, the interests of the nation’s ongoing economic recovery.
I look forward to continuing to support your efforts to strengthen our national economy by creating a broad based prosperity and to reform our financial system so that no President ever again faces what you and your economic team faced upon taking office in 2009.