Tuesday, September 17, 2013
Fed Chief Search Goes On After Summers Drops Out
WASHINGTON (Nikkei)--The search for a new Federal Reserve chairman could go back to square one now that former Treasury Secretary Lawrence Summers has withdrawn his name from consideration.
While Janet Yellen, the Fed's current vice chairwoman, is viewed as a top contender, some believe that a dark horse could emerge.
In addition to Yellen, President Barack Obama has also met with former Fed Vice Chairman Donald Kohn. Ex-Treasury Secretary Timothy Geithner had been cited as a potential candidate, but has apparently told the White House that he does not want the job. Former Bank of Israel Governor Stanley Fischer and Ex-Fed Vice Chairman Roger Ferguson have also emerged as possible contenders.
The yen briefly strengthened against the dollar Monday amid speculation loose U.S. monetary policy will be kept in place for a while longer. Summers has been viewed as a proponent of scaling back the easy policy. The greenback briefly hit the upper half of the 98 yen level.
(The Nikkei, Sept. 17 morning edition)