The contentious candidacy of Larry Summers for Fed chair is over, with Summers withdrawing his name over the weekend.
Summers, the former treasury secretary, had drawn displays of reticence from Senate Democrats and Republicans alike. Thought to be the front-runner and favorite of the Obama administration to take over the Fed chairmanship from Ben Bernanke, Senate Democrats showed reservation over Summers' candidacy, with four of the 12 Democrats on the Senate Banking Committee stating they would oppose Summers' confirmation, The Washington Post has reported.
Facing a Senate showdown over confirmation, Summers instead withdrew his name from consideration. In a letter to President Barack Obama obtained by The Washington Post, Summers signalled he knew his confirmation process would be fraught with difficulty.
"I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interests of the Federal Reserve, the Administration, or ultimately, the interests of the nation's ongoing economic recovery," Summers wrote.
Summers' decision clears the way for the likelihood that Obama will appoint Fed vice-chair Janet Yellen, who would become the first female Fed chair in history.