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Sunday, Sep 15
Hilsenrath: Summers withdrawal assures Fed wind-down will be slow
- "Any Fed wind-down of its easy-money programs will be slow and gradual," says Jon Hilsenrath, weighing in on the impact of Larry Summers withdrawing from the race to be the next central bank head. Remaining top contenders Janet Yellen and Don Kohn both helped shape and are supporters of current Fed policy.
- Whoever takes the job has a "challenging task," says Hilsenrath, as pulling back from easy policy too soon could send the economy back into recession, but not moving fast enough risks inflation or another financial bubble.
- Larry Summers is no dummy, and one can't help but wonder if it's the near-impossibility of normalizing policy without blowing something up that has him scurrying back to the safety of corporate boards, consulting gigs, and speaking engagements.
- There remain a few dark horse candidates as well, and one - former Treasury boss Tim Geithner - remains firm he is not up consideration to the post, reports the WSJ.