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WSJ: Yellen Is The Front-Runner For Fed Chair, Announcement Won't Happen This Week

Sam Ro   

WSJ: Yellen Is The Front-Runner For Fed Chair, Announcement Won't Happen This Week

ben bernanke Janet Yellen

REUTERS/Ho New

Janet Yellen sworn in as Federal Reserve board governor, October 4, 2010.

Federal Reserve Vice Chair Janet Yellen is now the favorite to become President Obama's nominee for Chairman.

This is according to the WSJ's Carol Lee, Damian Paletta, and Jon Hilsenrath who cite "people familiar with the process."

From their report:

The process for selecting a nominee isn't starting over, senior administration officials said Monday, and no new candidates for the position have been added to the mix. The only difference now is that Mr. Summers is no longer being considered.

An announcement won't happen this week, officials said.

On Sunday afternoon, former Treasury Secretary Larry Summers unexpectedly withdrew his name from the running to become the next Chairman of the Fed.

"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," Summers wrote in a letter to President Obama.

Considered the favorite by many, Summers was seen as someone who would be more hawkish than Yellen. In other words, economists expected him to reverse the course of the Fed's easy monetary policy more quickly and aggressively than Yellen.

"Could Obama's tone-deafness on the Fed steer him toward a choice other than Janet Yellen?" wrote Potomac Research Group's Greg Valliere this morning. "He has virtually no option - she's now the clear favorite - and the markets will get a more predictable policymaker than Summers would have been."

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