Talk of who will be the next Fed chair is getting louder and louder.
The favourite is Fed Vice-Chair Janet Yellen, but another name that’s reportedly in the mix is economist Larry Summers, who has had a long career in the public spotlight in this administration, the Clinton administration, and as the President of Harvard.
In Ben White’s Morning Money newsletter, the argument for Larry Summers (made by a supporter) is that he has the chops to deal with some kind of foreign economic crisis, should one arise.
“With Geithner gone, Bernanke leaving, [David] Lipton at IMF and [Michael] Froman at USTR, he’s the only veteran of the financial firefights around Mexico (’94), Asia (’97-’98), and the aftermath of 2008 who is ready to step up. While that world seems reasonably quiet right now, the White House doesn’t underestimate the risk of another ‘event’ in the next 3 years that could undermine the recovery. … So, LHS is a battled tested veteran who knows his way around the international financial system like no one else. Hard to discount that. As for why now, I have no idea but the White house shouldn’t let this drift into fall. Any confirmation will be tough (even Bernanke’s reappointment was harder than it should have been) and you need to give the Senate time to chew it over.”
Given the latest gyrations in emerging markets, as well as China, this is a pretty legitimate point to consider.
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