Leading Contenders for Fed Chief Emerge
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Chip Somodevilla/Staff/Getty Images(WASHINGTON) — The Federal Reserve’s policy of encouraging low interest rates — both short-term and long-term — may last a while longer now that Larry Summers has announced his withdrawal as a potential contender for Ben Bernanke’s job. That’s the clear view of financial markets.
Summers was considered more hawkish on the economy, which means that most people thought he would be more likely to rein in the government’s massive stimulus program. Stock futures rallied after Summers’ pulled his name from the list.
The latest front-runner to be the next chairman is 67-year-old Janet Yellin, a key architect of current policy. Yellin is now vice president of the Fed and is believed to be a strong supporter of keeping interest rates low for as long as possible.
But Yellin’s nomination is hardly a done deal. Other names being mentioned include Donald Cohn, a former vice chairman at the Fed, who was close to former Fed chief Alan Greenspan. A wild card pick could be Stanley Fisher, an American who now runs Israel’s central bank. Other possible picks include Roger Ferguson, CEO of the financial services company TIAA-CREF.
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