Yellen Is Now Front-Runner For Fed Chief, But Options Remain
September 19, 2013 by Jim Puzzanghera and Christi Parsons, Los Angeles Times
With Lawrence Summers removing himself from consideration to be the next Federal Reserve chairman, Janet Yellen becomes the acknowledged front-runner for the economic policy position.
But President Barack Obama still could go in another direction, and speculation swirled Monday about other potential candidates, including former Fed Vice Chairman Donald Kohn and former Treasury Secretary Timothy Geithner. But Geithner has remained firm that he’s not interested in the position.
Summers was considered Obama’s first choice for the job. But he withdrew Sunday in the face of criticism from many Democrats and doubts that he could win confirmation in the Senate.
Yellen, who has been Fed vice chairwoman since 2010 and a staunch supporter of Ben Bernanke’s policies, appears to be in the driver’s seat for the nomination.
Yellen, who raised early concerns about the potential impact of soaring housing prices before the financial crisis, was viewed as being less friendly to Wall Street and tougher on financial regulation.
She also was seen as being more concerned about the high unemployment rate, and more likely to address that as Fed chairwoman than Summers.
“The position of Fed chair is immensely important for our economy, and the president has an opportunity to unify the country behind a candidate who understands the impact of the Federal Reserve’s policies on the middle class,” said Rep. Maxine Waters of California, the top Democrat on the House Financial Services Committee.
In July, Waters organized a letter to Obama signed by 37 other female House Democrats, urging him to pick Yellen. Among other things, they argued that Yellen was more concerned about the effect of Fed policies on average Americans.
After Summers’ withdrawal, Sheila Bair, former chairwoman of the Federal Deposit Insurance Corp., tweeted that Yellen was the best choice and would require minimal political capital to confirm because Democratic opposition would be unlikely.
