- Obama mulls support for Islamists in Syria, with conditions
- Obama ‘birther’ theories float, as Hawaii health director killed in crash
- U.S. drone faulted for killing 14 ‘innocent civilians’ at Yemen wedding
- GOP hopes taking shutdown off the table with budget deal will pay dividends
- Chinese Death Star: The moon cited as the perfect launch pad for ballistic missiles
- Help wanted: Homeland Security plagued by vacancies at the top
- We are not amused: Queen’s protection officers warned to keep ‘sticky fingers’ off the royal cashews
- Unleash the crossbows: Gov. Scott Walker creates new hunting season
- Bubonic plague kills 20 in Madagascar
- G-20 diplomats fell for hacker attack promising nude photos of former French first lady Carla Bruni
Larry Summers withdraws from consideration as Bernanke’s successor at Fed
Mr. Summers, a key architect of the Obama administration’s economic stimulus plan in 2009, informed President Obama of his decision in a phone call Sunday morning. Mr. Obama said in a statement that he accepted the decision.
Mr. Obama said said he “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.”
“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,” Mr. Obama said.
The move leaves Janet Yellen, vice chairwoman of the Fed, as the obvious front-runner to replace Chairman Ben S. Bernanke when his term expires in January. Mr. Summers was said to have been Mr. Obama’s leading candidate.
The White House didn’t give a reason for Mr. Summers‘ withdrawal, but the prospects for his nomination dimmed last week when a top Democrat on the Senate Committee on Banking, Housing and Urban Affairs, Sen. Jon Tester of Montana, announced that he wouldn’t support Mr. Summers. A spokeswoman for Mr. Tester said that the senator “believes we need a consensus-builder to lead the Federal Reserve” and that he was “concerned about Mr. Summers‘ history of helping to deregulate financial markets.”
Mr. Summers, a former White House economic adviser, recently reached out to another key Democrat on the committee, Sen. Elizabeth Warren of Massachussetts, as the debate intensified over his potential nomination.
Opposition from women’s groups also was damaging Mr. Summers‘ candidacy. He came under fire for a controversy in 2005, while he was president of Harvard University, by suggesting that women were not as capable as men in math and science.
As Mr. Tester suggested, Mr. Summers also sparked opposition over his support while secretary of the treasury under President Clinton for removing barriers that prevented financial institutions from consolidating their banking and investment subsidiaries.
Senators of both parties were opposed to his nomination, and many lawmakers wrote Mr. Obama a letter this summer urging him to appoint Ms. Yellen.
Their opposition could have left Mr. Obama in the position of needing Republican support just to get Mr. Summers‘ nomination out of the banking committee. Democrats hold 12 of 22 seats on the committee.
Ms. Yellen’s service in government includes a stint on Mr. Clinton’s Council of Economic Advisers in the late 1990s. From 2004 to 2011 she was president of the Federal Reserve Bank of San Francisco. She has served as Fed vice chair since 2010.
Another possible candidate for the job is Donald Kohn, who is retired from the Fed board.
© Copyright 2013 The Washington Times, LLC. Click here for reprint permission.
About the Author
Dave Boyer is a White House correspondent for The Washington Times. A native of Allentown, Pa., Boyer worked for the Philadelphia Inquirer from 2002 to 2011 and also has covered Congress for the Times. He is a graduate of Penn State University. Boyer can be reached at firstname.lastname@example.org.
- Senate's filibuster rule change opens floodgates for Obama nominees
- White House faces press revolt over access to Obama's South Africa flight
- U.S., Britain to halt non-lethal aid to Syrian opposition
- New Obama adviser John Podesta is against Keystone but will steer clear of pipeline deliberations
- White House blasts GOP for criticism of Castro handshake
Latest Blog Entries
- White House downplays concerns over phony sign-language interpreter
- Joe Biden signs condolence book for Nelson Mandela at D.C. embassy
- Biden to Japanese businesswomen: 'Do your husbands like you working full-time?'
- Son, granddaughter join Biden on weeklong diplomatic trip to Asia
- Obamas visit fasting immigration activists
By Mangosuthu Buthelezi
Memories of a long brotherhood tempered in common struggle
- House budget bargain faces Senate filibuster; Republicans line up to oppose
- Broncos-Chargers game ends with several stabbings
- Obama's Afghanistan experts stumped on U.S. death toll, war costs during hearing
- NAPOLITANO: A conspiracy so vast
- Kim Jong-un consolidating power or losing grip on North Korea's military
- Inside China: Ukraine gets nuclear umbrella
- Echoes of Cold War in Ukraine as Russia tries to rein in former Soviet satellites
- PRUDEN: The last living witnesses; they wore the yellow star and remember the Nazi terror
- American missing in Iran was CIA operative who went rogue - Washington Times#pagebreak#pagebreak
- Medicare pays full price for half-empty vials of medicine
Independent voices from the The Washington Times Communities
Consummate traveler Todd DeFeo explores the unique stories that make destinations worth going to.
Extraordinary day at Redskins Park
White House pets gone wild!
Let it snow