The global economy can breathe a collective sigh of relief as former Treasury Secretary and Harvard University president Larry Summers withdrew his own nomination for Federal Reserve Chairman this week, capping a speculative horse race that saw his major opponent and Ben Bernanke protege Janet Yellen become all but abandoned by the White House. His exit from consideration, following rumors that he had always been President Barack Obama's personal choice, throws wide the search for the person to next take the top spot in the Marriner Eccles Building.
Summers was always a controversial choice to lead the Federal Reserve after Bernanke's presumed exit in January 2014. He still bears the political scars from the Clinton years, when he advocated successfully for the widespread deregulation of the U.S. financial system – most famously the dissolution of the Glass-Steagal Act – and set the world up for the ultimate collapse that took place nearly a decade later. Following his exit from government, Summers undertook a series of private ventures that drew both praise and big checks from Wall Street by banking on his connections between the public and private sectors.
His rise and fall at Harvard University, which culminated with a faculty vote of no-confidence after a scandal involving support for a financially criminal friend surfaced among the community. Yet President Obama stood by Summers and seemed to thank him for his time as a senior economics advisor by tacitly supporting him for the Fed chairman. Yet with too many skeletons in his closet to avoid, Summers knew he could not survive a Senate confirmation without his reputation becoming seriously – and publicly – bruised in the process.
"I will always be grateful to Larry for his tireless work and service on behalf of his country, and I look forward to continuing to seek his guidance and counsel in the future," Obama said in a statement.
For now, the world economy is saved from a man whose connections to Wall Street make him a poor choice to offer impartial guidance to the global monetary system. Yet other troubles remain, which those interested can read about by exploring Great Wealth Strategies today. We also offer information regarding retirement planning, independent investment ideas and more.