(Reuters) - Lawrence Summers, a former top economic aide to President Barack Obama and a Treasury secretary under President Bill Clinton, has withdrawn from consideration to succeed Ben Bernanke as Federal Reserve chairman.
"I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interest of the Federal Reserve, the administration or, ultimately, the interests of the nation's ongoing economic recovery," Summers said in a letter to Obama.
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Summers letter
Obama accepts Summers withdrawal
Comments:
U.S. SENATOR BERNIE SANDERS, INDEPENDENT, VERMONT:
"I applaud Larry Summers for withdrawing his name from consideration. The truth is that it was unlikely he would have been confirmed by the Senate. What the American people want now is a Fed chairman prepared to stand up to the greed, recklessness and illegal behavior on Wall Street, not a Wall Street insider whose deregulation efforts helped pave the way for a horrendous financial crisis and the worst economic downturn in the country since the Great Depression. The Fed now must help develop policies which create millions of decent-paying jobs and rebuild the middle class."
SCOTT FREW, MANAGING PARTNER AND OWNER, ROCKINGHAM CAPITAL ADVISORS, HARTFORD, CONNECTICUT:
"Maybe it was a recognition that he wasn't going to get through the confirmation process, and Obama certainly doesn't seem to have a whole lot of political capital right now... If the market concludes that this means (Janet) Yellen is in, which I assume it will, there's certainly a perception that Yellen is more dovish than Summers... My first thought was that the markets will rally on this."
DAVID R KOTOK, CHAIRMAN & CHIEF INVESTMENT OFFICER, CUMBERLAND ADVISORS, SARASOTA, FLORIDA:
"I hope Obama appoints quickly now so uncertainty is removed. (Janet) Yellen seems most likely now."
JIM KOCHAN, CHIEF FIXED INCOME STRATEGIST, WELLS FARGO FUNDS MANAGEMENT LLC, MENOMONEE FALLS, WISCONSIN:
"With Summers, there has been perception that he might pursue a faster end to tapering. Easily the front runner now is Vice Chair Janet Yellen. She is a strong advocate of a stimulative policy. Then, there's always the possibility of another person such as Donald Kohn. There might be a market pop on this news but it will be a short-lived one. People could now focus on the FOMC and what Bernanke says on Wednesday. The speculation and debate on who will be the next Fed chairman has been a sideshow."
BONNIE BAHA, PORTFOLIO MANAGER, GLOBAL DEVELOPED CREDIT, DOUBLELINE CAPITAL, LOS ANGELES: