Mr. Market Throws Summers a Farewell Party
Financial markets around the world seemed to welcome news that former U.S. Treasury Secretary Lawrence Summers has withdrawn his name for consideration to be the next Chairman of the Federal Reserve. The news broke on Sunday, when a letter that Summers wrote to President Barack Obama announcing his desire to withdraw was published online.
Summers wrote that, ”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.”
The acrimony surrounding Summers’s candidacy has been tangible over the past few months and it has contributed to market tension. As rumors circulated that Summers was President Barack Obama’s favored nominee, Democratic members of Congress, economists, and the public organized and pushed back. Several Democratic members of the Senate have come forward publicly stating that they would oppose Summers’s nomination while 350 economists have signed a letter addressed to the president calling for the nomination of current Fed Vice Chair Janet Yellen.