The Norman Transcript

Nation/World

September 16, 2013

Summers withdraws name from federal consideration

WASHINGTON — Lawrence Summers, who was considered the leading candidate to succeed Ben Bernanke as Federal Reserve chairman, has withdrawn from consideration, the White House said Sunday.

Summers’ withdrawal followed growing resistance from critics, including some members of the Senate committee that would need to back his nomination. His exit could open the door for his chief rival, Janet Yellen, the Fed’s vice chair. If chosen by President Barack Obama and confirmed by the Senate, Yellen would become the first woman to lead the Fed.

In the past, Obama has mentioned only one other candidate as possibly being under consideration: Donald Kohn, a former Fed vice chair. But Kohn, 70, has been considered a long shot.

The administration also reached out to former Treasury Secretary Timothy Geithner early in the process. Geithner said he was not interested in being considered.

Obama is expected to announce a nominee for the Fed chairmanship as early as this month. Bernanke’s term ends Jan. 31, 2014.

Some economists said Sunday that they think Summers’ exit significantly boosts the likelihood of a Yellen nomination.

“The odds that the president will nominate Janet Yellen are now much higher,” said Mark Zandi, chief economist at Moody’s Analytics.

Still, Zandi added, “There is a chance that there is some dark horse candidate, possibly Tim Geithner.”

David Jones, chief economist at DMJ Advisors and the author of several books on the Fed, said he saw Yellen’s selection as a virtual certainty.

“There is a strong view that making a woman Fed chair is an important step,” Jones said. “There is no question that her experience qualifies her for the role.”

Summers and his allies had been engaged in an unusually public contest with Yellen supporters, with each side lobbying the administration.

An openly waged succession battle is something that the Fed, which will turn 100 in December, has never before witnessed. The selection of a chairman has long been a matter handled privately by a president and his senior advisers.

Text Only | Photo Reprints
Nation/World
  • Be ready for ‘prolonged’ Gaza war, prime minister says

    GAZA CITY, Gaza Strip — Signaling an escalation of Israel’s Gaza operation, Prime Minister Benjamin Netanyahu told Israelis Monday to be ready for a “prolonged” war, and the military warned Palestinians in three large neighborhoods to ...

    July 29, 2014

  • Deal to improve health care costs $17B

    WASHINGTON — A bipartisan deal announced Monday would authorize about $17 billion to help veterans avoid long waits for health care, hire more doctors and nurses to treat veterans and make it easier to fire executives at the Department of ...

    July 29, 2014

  • FedEx charges raising online pharmacy issues

    SAN FRANCISCO — FedEx Corp., the latest company accused in a federal probe involving illegal online pharmacies, says it will fight the charges that it knowingly shipped drugs to people who lack valid prescriptions....

    July 27, 2014

  • EU, U.S. seek to curb Putin’s Ukraine course

    BRUSSELS — Months after Russia annexed Crimea and stepped up support for separatists in eastern Ukraine, Europe and the United States are still searching for a way to persuade Russian President Vladimir Putin to change course....

    July 27, 2014

  • Fighting intense near crash

    DONETSK, Ukraine — Ukrainian armed forces mounted a major onslaught against pro-Russian separatist fighters Sunday in an attempt to gain control over the area where a Malaysia Airlines plane was downed earlier this month....

    July 27, 2014

  • Gaza war rages despite truce pledges

    GAZA CITY, Gaza Strip — Israel and Hamas launched new attacks Sunday in the raging Gaza war, despite going back and forth over proposals for a temporary halt to nearly three weeks of fighting ahead of a major Muslim holiday....

    July 27, 2014

  • Hamas fires rockets on Israel, ending 12-hour lull

    BEIT HANOUN, Gaza Strip — Hamas said it fired five rockets at Israel late Saturday after rejecting Israel’s offer to extend a 12-hour humanitarian cease-fire by four hours, casting new doubt on international efforts to broker an end to 19 ...

    July 27, 2014

  • Death shows Ebola can spread through air travel

    ABUJA, Nigeria — Nigerian health authorities raced to stop the spread of Ebola on Saturday after a man sick with one of the world’s deadliest diseases brought it by plane to Lagos, Africa’s largest city with 21 million people. The fact ...

    July 27, 2014

  • Police ID kids killed in Philly carjacking crash

    PHILADELPHIA — Two carjackers who fled after ramming a stolen SUV into a family selling fruit for their church, killing three young siblings, were still on the run Saturday as the reward for their capture topped $100,000. The children’s ...

    July 27, 2014

  • U.S.: Russia firing across border

    KIEV, Ukraine — Russia is launching artillery attacks from its soil on Ukrainian troops and preparing to move heavier weaponry across the border, the U.S. and Ukraine charged Friday in what appeared to be an ominous escalation of the ...

    July 26, 2014