CNBC: Obama Poised to Name Summers as Next Fed Chairman

Tuesday, 27 Aug 2013 07:34 AM

By Newsmax Wires

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President Barack Obama is reportedly prepared to name Lawrence Summers as the next chairman of the Federal Reserve in a few weeks although the former Treasury secretary is "still being vetted" so the announcement may be delayed.

Current Fed Chairman Ben Bernanke's term ends in January. Obama has said that Bernanke has "already stayed a lot longer" in the role than he expected.

Fed Vice Chairman Janet Yellen, a policy dove who appears to be in a tight race for the top job with Summers, whose views are less known.

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Several Fed officials, who spoke on condition of anonymity, told Reuters that they did think Summers was Obama's clear favorite, though they had a few doubts.

"Has he devised a strategy to be effective within the institution?" one asked.

Some insiders also expressed concern about Summers' close ties to Wall Street.

A new chairman is just the beginning of what could be a big leadership change at the Fed next year, giving investors yet another reason to second-guess the U.S. central bank's plan to scale back its support for the economy, Reuters has reported.

Up to six officials who would otherwise vote on monetary policy, or half of the central bank's voting ranks, could conceivably be gone in 2014, most of them by the end of January.

Five of those, including Bernanke, sit on the Fed's seven-member Board of Governors, setting the stage for a whole new cast of characters to run the world's most influential central bank and giving Obama a chance to put a big stamp on it.

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