Politic365

 
 


Policy

11:22pm September 15, 2013

Summers removes himself from consideration for Fed Chair, saving the WH a potential fight with Dems

Larry Summers

Larry Summers, who was a former economic advisor to President Obama and a Secretary of the Treasury in the Clinton administration, has taken his name out of consideration for the Federal Reserve chair. Summers has been criticized for his role in deregulation, which some attribute to causing the financial crisis, and his cozy relationships with Wall Street Banks. After servings as the president of Harvard, Summers served as a part-time managing director of a hedge fund and was compensated for delivering speeches by financial institutions such as Goldman Sachs, JP Morgan, and Lehman Brothers.

On Sunday, Summers sent a letter to President Obama. He said that the reason he was withdrawing his name was because: “I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interest of the Federal Reserve, the Administration or, ultimately, the interests of the nation’s ongoing economic recovery.”

At least four Democratic senators had announced their opposition to Summers if he were to be nominated for Fed Chair. Senators Jon Tester, Sherrod Brown, Jeff Merkley, and Elizabeth Warren had expressed opposition to Summers.

In addition to the opposition Summers would face from the Democrats, women’s groups such as the National Organization for Women and UltraViolet were gearing up to oppose Summers and instead support Janet Yellen, an economist from University of California, Berkeley and the Vice Chairwoman of the Board of Governor’s of the Federal Reserve System. While president of Harvard, Summers made a remark that women were not as represented in the sciences was because of some innate differences between men and women. That comment did not go over well with faculty and has often been cited as a reason for the vote of no confidence in his work as president.

President Obama said the following in a statement after Summers withdrew his name, “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. I 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.”

With Summers deciding to withdraw from consideration, a fight between Democrats and the White House is averted. This comes after days of Democratic and GOP opposition to the President’s plan to attack Syria. The plan to attack Syria was canned after it looked like the Congress would not give authorization for such action. The President’s support of Larry Summers shows his willingness to attach himself to an establishment figure who is plainly unpopular with the Democratic base.

 

 



About the Author

Adriana Maestas
Adriana Maestas is the senior contributing editor of Politic365.com.




 
 

 
Kay Hagan immigrants

Immigrant activists target Democratic Sen. Kay Hagan with billboard campaign

This week a group of immigrant activists in North Carolina unveiled a billboard campaign taking aim at Democratic Senator Kay Hagan for her immigration positions. Hagan was one of the five Democratic senators who opposed the DR...
by Adriana Maestas
0

 
 
o1

Why Do Democrats Think They Can Bash Obama and Get Black Votes?

Here are a few election time questions to think over: Why in the world do Democrats think they can bash President Obama and his policies and still win Black votes?  Why should Black voters be motivated to turnout after months...
by Lauren Victoria Burke
0

 
 
7432022562_3733c11c35_k

Supreme Court is allowing Texas to use strict voter ID law in Nov. election

On Saturday, the Supreme Court gave Texas the approval to move forward with implementing a strict voter identification law in the upcoming midterm election. Adam Liptak for The New York Times wrote: “The law, enacted in 2...
by Adriana Maestas
0

 

Advertisement
 
mayor1nyc

Noerdlinger Obsession Verifies NY Reporters Make Way Under $170,000

“It’s none of your f—ing business.” — New York City Mayor Ed Koch.  If you want to learn every detail of every parking ticket or unpaid debt of the Chief of Staff of the wife of the Mayor of New York and her boy...
by Lauren Victoria Burke
1

 
 
young-black-woman-texting

Rising Wireless Taxes Could Jeopardize Mobile Use

Economist Scott Mackey, in conjunction with the Tax Foundation, an independent tax policy research organization, recently released Wireless Taxation in the United States 2014. On average, each month when people pay their wirele...
by Kristal High
1

 




One Comment



Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>