The big news of the day is Larry Summers’ withdrawal from the race to become the next Chairman of the Federal Reserve.
With the former Treasury Secretary out, economists see Fed Vice Chair Janet Yellen as a shoe-in.
Of course, some continue to point to others who still have a strong chance of being nominated.
One name that advanced after Summers pulled his name was former Vice Chair Don Kohn.
But first, here’s some commentary from Potomac Research Group’s Greg Valliere, one of the more connected political analysts in D.C.:
FIRST, A WORD ON SUMMERS: We never understood why Barack Obama wanted still another fight this fall; the budget crisis will be more than enough. Even Summers realised this — but not, apparently, the White House. Could Obama’s tone-deafness on the Fed steer him toward a choice other than Janet Yellen? He has virtually no option — she’s now the clear favourite — and the markets will get a more predictable policymaker than Summers would have been.
This is interesting because Valliere is very close to Kohn. IN FACT, Kohn works as a senior strategist for Potomac Research Group.