Larry Summers, the former Secretary of the United States Treasury, has contacted President Barack Obama by phone and letter to inform the president that he is withdrawing his name from consideration to be the next Chairman of the United States’ Federal Reserve, according to a Huffington Post report on Sunday afternoon.
In the correspondence sent to President Obama, Summers stated that he has reluctantly concluded that any possible confirmation process for him would be acrimonious and would not serve the interest of the nation’s Federal Reserve, the Obama administration, or – ultimately – the interests of the nation’s ongoing economic recovery.
A White House response to Summers’ withdrawal stated that Summers was a critical member of Obama’s team due to his expertise, wisdom, and leadership that helped the president wrestle the economy back to growth. Obama stated that he will always be grateful to Summers for his tireless work and service on behalf of the United States. Obama also asserted that he will continue to seek Summers’ counsel and guidance in the future.
With Summers out of the running, there is increased speculation that Janet Yellen, the Federal Reserve’s current vice chair may be nominated for the job. A week ago, reportedly, in excess of 350 economists signed a statement trying to convince President Obama that Yellen is the person for the job. Both Yellen and Donald Kohn, a vice chair, have been interviewed by the president regarding the high post.