Source: Summers to be next Fed chief

A White House source says the President is likely to nominate Larry Summers to be the next Federal Reserve chairman, reports CNBC.

Summers and current Fed Vice Chair Yellen are believed to be the front-runners, though the volume of leaks over the past few weeks has certainly pointed to Summers.

Past comments suggest Summers leans more hawkish than both Bernanke and Yellen, and this could have as much to do with the Treasury bear market this summer as any taper talk. Treasury prices continue higher this morning as risk markets are shaky over Syria.

TLT +0.4% premarket.


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Comments (5)
    , contributor
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    Summers will face a tough fight for confirmation. A number of Senators and Congressmen on both sides of the aisle have already voiced strong opposition. Women's groups will point to his misogynistic remarks of the past, others will point to his disastrous and inappropriate meddling with the Harvard endowment which produced record losses there as well as his legendary penchant for stupid off the cuff remarks including once supposedly saying that Africa would make a good dumping ground for nuclear waste. By temperament alone he could become an horrific Fed Chairman. Obama likes him because he has been quietly advising the President for 6 years on economic matters and telling this President (who without doubt is one of the least knowledgeable about economic and business matters in history) what Obama wanted to hear. If confirmed which is still in doubt he will seek to accelerate tapering, interest rates will rise, the stock market will drop and we'll all wish it was Yellen in charge.
    27 Aug 2013, 09:27 AM Reply Like
  • Viper740
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    If interest rates go up, then this will increase the government's cost of borrowing, which will therefore discourage government profligacy, will it not? I see this as a good way to discourage a government locked in out of control spending.


    So if Summers will let rates rise more than Yellen, then let it be Summers.
    27 Aug 2013, 10:48 AM Reply Like
    , contributor
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    The rise in interest rates among other things that Summers might inspire could tank the whole economy; reduce tax collections and force increased spending on a variety of very expensive economic support measures just to keep the whole thing from going down altogether; just like in 2009. Summers would be a disaster.
    27 Aug 2013, 01:38 PM Reply Like
  • Viper740
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    How can the government increase spending if the cost of borrowing is too high, and there's no more QE? I don't see how they'll be able to.


    Letting interest rates rise naturally in this manner seems like a good option. Yes, the stock market might go down, but so what. There's no guarantee that the stock market is supposed to go up forever. And smart investors will put their money in non-equity instruments that will not lose value, anyway.
    27 Aug 2013, 07:26 PM Reply Like
  • medicalquack
    , contributor
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    You should watch this video done by his former Quant at DE Shaw, horrible mistake to nominate Larry Summers...he's digitally illit too...go to the Q and A to hear what she says about him being all over the place in a respective way...wants his charts in red and disregard for the talent he had working for him. Larry comes up for discussion in the Q and A of the video.



    It's called modeling for inequality with math models or as Cathy puts it "Weapons of Math Destruction" and this man is dangerous. Also view the additional videos on Algo Duping to learn more, it's all about math and models that lie and no accountancy required by banks or companies.



    The videos are grouped to where the layman can understand a lot of this and should make you mad as this the reality folks of all the decision making running servers 24/7 with machines doing what they get programmed to do with humans, politics are not hear, just the algorithms.


    People like Summers are just using the tools the real intelligent people (data scientists, aka quants) disaster here with him running the Fed...seems like there could be some mental issues that have developed over the years here too with Summers from what I read in the news...
    27 Aug 2013, 03:03 PM Reply Like
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