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Fears Rise That Larry Summers Is Likely To Be Named Fed Chairman

Posted by on Jul. 24, 2013 at 8:20 AM
  • 13 Replies

 larry summers fed chairman

Liberal observers worry that President Barack Obama will choose Larry Summers as Fed Chairman.

WASHINGTON -- President Barack Obama is leaning towards former White House Economic Adviser Larry Summers as his choice to replace Ben Bernanke as chairman of the Federal Reserve, according to people who have been briefed on the administration's thinking. Liberal critics of Summers' economic record, along with those who continue to question his ability to work with women, are waging a last-minute campaign to persuade the president to change his mind and instead choose the other frontrunner for the job, Fed Vice Chair Janet Yellen.

Chatter increased Tuesday among Summers' opponents when Fed Governor Sarah Bloom Raskin's name was floated as a possible deputy to Treasury Secretary Jack Lew. Raskin, who has been harshly critical of the Fed, is broadly popular with progressives. Liberal Fed watchers suspected the move was aimed at people pressing Obama to name a woman to the Fed, and they worried selecting Raskin for Treasury would give the president cover to name Summers Fed chairman.

"We are concerned by rumors that Larry Summers, a man known for his offensive and callous opinions on women, is currently being considered to head the Federal Reserve. Women will not soon forget if President Obama picks Mr. Summers for such an important post, a man who believes women are somehow inherently less capable than men," Shaunna Thomas, co-founder of feminist group UltraViolet, said in a statement. "It is high time to shatter the glass ceiling at the Fed and appoint a woman to a post that impacts so many women, and Janet Yellen would be a much celebrated pick."

Summers worked in the Clinton administration as a protege of Treasury Secretary Bob Rubin, and helped lead the effort to deregulate Wall Street. Rubin, a long time Goldman Sachs trader and executive, moved to Citigroup after his time in the Clinton administration. Rubin has been a leading advocate of the bond-holding community, which favors a strong dollar, low inflation and a loose labor market, otherwise known as high joblessness. Rubin has been a critic of Bernanke's efforts to stimulate the economy, arguing that it could weaken the dollar and drive inflation, both of which would drive down bond prices. (Even this week, Rubin was making phone calls urging that Detroit's bondholders be fully repaid, one source familiar with his lobbying said.)

Summers' opponents worry that he will follow the advice of his mentor and dial back the Fed's efforts to drive down unemployment in order to appease the bond market. Yellen, meanwhile, argues that protecting bondholders is not the Fed's only job.

Others who have been briefed by the administration cautioned that the decision is not yet final. As speculation that Summers' ascension was all but assured picked up on Tuesday, administration officials told congressional Democrats that a choice hadn't been made.

At least one senator expressed his dismay Tuesday at the possible selection of Summers. "Larry Summers for Fed Chair? Disconcerting," Sen. Jeff Merkley (D-Ore.) tweeted, "many questions to answer."

This is a developing piece and has been updated.

by on Jul. 24, 2013 at 8:20 AM
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Replies (1-10):
143myboys9496
by Gold Member on Jul. 24, 2013 at 8:22 AM

 Wonderful..just wonderful...lately this is what anything Barry does should be handed to the American public:

JoJoBean8
by Silver Member on Jul. 24, 2013 at 9:31 AM
Quoting 143myboys9496:

 Wonderful..just wonderful...lately this is what anything Barry does should be handed to the American public:

lol
Clairwil
by Platinum Member on Jul. 24, 2013 at 1:26 PM
Quoting 143myboys9496:

 Wonderful..just wonderful...

Who do you think should be appointed?

And what do you think should be their top three priorities?


UpSheRises
by on Jul. 24, 2013 at 2:47 PM

I don't really think it matters. If you work in finance and are "qualified" to be the fed chair you won't work with the best interest of the american people in mind because that isn't your job.

He could appoint Jeffery Skilling for all i care.

SallyMJ
by Ruby Member on Jul. 24, 2013 at 5:30 PM
1 mom liked this

I am OK with Summers.

They say his "problems with women." What they are referencing is that when he was the president of a university, he made some  comments about data that show in general men score higher than women in aptitude for certain math or scientific related fields. And he said it needed to be discussed and further investigated. And he was lambasted for it, and I think he was forced to resign. The PC police at your service. 

143myboys9496
by Gold Member on Jul. 25, 2013 at 12:20 AM

 

Quoting Clairwil:

Quoting 143myboys9496:

 Wonderful..just wonderful...

Who do you think should be appointed?

And what do you think should be their top three priorities?

 

 How about anybody that does NOT stand for this:

"Rubin has been a leading advocate of the bond-holding community, which favors a strong dollar, low inflation and a loose labor market, otherwise known as high joblessness."

Clairwil
by Platinum Member on Jul. 25, 2013 at 2:51 AM
Quoting 143myboys9496:
Quoting Clairwil:
Quoting 143myboys9496:

 Wonderful..just wonderful...

Who do you think should be appointed?

And what do you think should be their top three priorities?

 How about anybody that does NOT stand for this:

"Rubin has been a leading advocate of the bond-holding community, which favors a strong dollar, low inflation and a loose labor market, otherwise known as high joblessness."

So you want to see inflation reduce the value of government t-bills, thereby attacking the dollar's status as a reserve currency, and increasing the money spent on servicing America's national debt?

143myboys9496
by Gold Member on Jul. 25, 2013 at 9:17 AM

Well I guess you don't care then if the unemployment rate rises higher than it is? I have no issue with a strong dollar but not at the risk of unregulated trading..we've already seen what that does.

"Summers' opponents worry that he will follow the advice of his mentor and dial back the Fed's efforts to drive down unemployment in order to appease the bond market. Yellen, meanwhile, argues that protecting bondholders is not the Fed's only job. "

Quoting Clairwil:

Quoting 143myboys9496:
Quoting Clairwil:
Quoting 143myboys9496:

 Wonderful..just wonderful...

Who do you think should be appointed?

And what do you think should be their top three priorities?

 How about anybody that does NOT stand for this:

"Rubin has been a leading advocate of the bond-holding community, which favors a strong dollar, low inflation and a loose labor market, otherwise known as high joblessness."

So you want to see inflation reduce the value of government t-bills, thereby attacking the dollar's status as a reserve currency, and increasing the money spent on servicing America's national debt?

 

143myboys9496
by Gold Member on Jul. 25, 2013 at 9:18 AM

 Personally, I can't afford to pay for MORE unemployment. I'm tapped out.

Quoting Clairwil:

 

 

Clairwil
by Platinum Member on Jul. 25, 2013 at 10:54 AM
Quoting 143myboys9496:

Well I guess you don't care then if the unemployment rate rises higher than it is?

I'm saying it is more complex than you're making out and, for all your objections, you still haven't presented a valid alternative.

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