Lawrence H. Summers, President Emeritus and Harvard economics professor, has withdrawn from consideration to succeed Ben Barnnke as chairman of the Federal Reserve, according to an AP report.
Summers’ withdrawal came following resistance from critics, including members of the Senate committee that would back his nomination.
With Bernanke’s term ending January 31, 2014, President Barack Obama is expected to announce his nominee for the Fed chairmanship as early as this month, the AP reports.
Summers, as director of the National Economic Council, oversaw the administration’s response to the financial crisis President Obama faced early in his first term.
Summers alluded to opposition from Democrats, including the Senate Banking Committee, in a letter sent to President Obama, formally announcing his withdrawal:
“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.”
The AP reports, that Summers’ alienation of colleagues and unfavorable leadership style were reasons for opposition from critics. In addition to being “too close to Wall Street,” Summers was criticized for comments about women and math and science.
A Washington Post report noted that Summers has come under fire for his role in deregulating the financial industry while serving under President Bill Clinton.
While the the selection of a chairman has typically been handled privately by a president and his senior advisors during the Fed’s nearly 100 existence, Summers and his allies have been engaged in public contests with supporters of Janet Yellen, the Fed’s vice chairman, with each side lobbying the administration.
The AP reports that last week, more than 350 economists signed a letter to Obama asking him to nominate Yellen. The letter praised her leadership and commitment to job growth.
Over the summer, 20 Democratic senators signed a letter to Obama expressing their support for Yellen.
Reportedly, there were signs Obama had been leaning towards nominating Summers.
With Yellen gaining supporters, and reports of Democratic committee member Jon Tester of Montana, announcing his opposition to Summers, the Harvard economics professor would have faced a tough challenge to win support from Republicans on the committee. Yellen is likely to face the same challenge.
The AP reports that Obama has defended Summers publicly and behind closed-doors.
“I will always be grateful to Larry for his tireless work and service on behalf of his country, and I will look forward to continuing to seek his guidance and counsel in the future,” Obama said Sunday.
Summers was one of Obama’s key economic advisers until late 2010, according to an NPR report. Since then, he has served as a Harvard professor.
