Summers as Fed Chairman? White House Says Not Just Yet
Next week could be a significant one for the United States economy. The Federal Open Market Committee is scheduled to meet for its September 18-19 meeting, and the atmosphere is thick with taper talk. Many market watchers and economists — including some at the Fed itself — have suggested that the time is right for policymakers to reduce the flow rate of asset purchases. Such a move could send a sort of shock wave around the world as financial markets adjust to the new environment.
But a change in policy isn’t the only announcement people are expecting. According to Nikkei, a Japanese business daily, President Obama is gearing up to announce his nomination for the next chair of the Fed, and the news could come as early as the end of next week, after the conclusion of the FOMC meeting. That candidate is reportedly former Treasury Secretary Lawrence Summers.
However, this news — provided to the publication by anonymous sources — is suspect. Observers immediately questioned the legitimacy of the claim, and the White House was quick to comment. Amy Brundage, a deputy press secretary for the economy, tweeted: