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Larry Summers shocked Wall Street and Washington circles on Sunday by withdrawing his name for consideration as the next U.S. Federal Reserve chairman.
Summers wrote in a letter to U.S. President Barack Obama, "I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interest of the Federal Reserve, the Administration, or ultimately, the interests of the nation's ongoing economic recovery."
His decision comes at a critical point for the Federal Reserve. The Fed will meet on Tuesday and Wednesday to discuss whether it will "taper" its third round of asset purchases from the current monthly pace of $85 billion.
His decision to withdraw makes Janet Yellen, the current vice chair of the Federal Reserve, the favorite to become the next Fed chair.
The idea of Summers as the Fed's next chairman was met with strong criticism, and markets soared to within 1% of record highs Monday morning after the announcement.
Some believe that Summers was likely to take a more hawkish approach to the easy money policies of current Chair Ben Bernanke.
Others, myself included, said "good riddance" and see the news as a positive step in taking the keys to the asylum away from the inmates…
Why Summers Backed Out of Fed Chair Running
Summers didn't have a hill to climb when it came to the nomination process for the next Fed chairman; he faced a mountain.
Senate Democrats had mounted a bitter offensive against his nomination, and firebrand and anti-Wall Street Sen. Elizabeth Warren, D-MA, seemed ready to block him at all costs.
Now some think Summers is an easy target for criticism and that criticizing him has become clichéd. But Summers deserves constant pressure given his background…
Time and time again, the man was given a fresh start and leadership responsibilities, only to let his own ego get in the way.