Washington, DC, United States (4E) – Former Treasury Secretary Larry Summers withdrew his nomination for chairman of the Federal Reserve Sunday amid opposition to his confirmation in the U.S. Senate.
In his letter to President Barack Obama, Summers, 58, said his confirmation will not serve the interest of the Fed, the administration and the country’s ongoing economic recovery.
Obama accepted Summers’ decision. He named Summers to replace Fed chief Ben Bernanke, whose term ends on Jan. 31, because of his expertise, wisdom and leadership in wrestling back the economy to growth.
The withdrawal of Summers leaves Obama with two candidates for the top Fed post: current Fed vice chairman Janet Yellen, 67, and former Fed vice chairman Donald Kohn, 70.
From the two choices, Yellen seems to have the upperhand with 21 senators supporting her nomination in a letter to Obama in July. If nominated and confirmed, she will become the first woman to become Fed chairman.
Opposition to Summers’ nomination grew last week with three Democrats from the Senate Banking Committee declaring their opposition. They are Senators Jeff Merkley of Oregon, Sherrod Brown of Ohio and Jon Tester of Montana.
The opposition stemmed from Summers support for deregulating the banks industry during the Clinton administration.