Although Obama may be willing to ignore the cries of the progressive caucus, it would seem that those cries have not fallen on deaf ears. Larry Summers has officially stated that he is withdrawing any nomination to be the chair of the Federal Reserve.
Summers is quoted in a letter to the President as saying:
“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.”
This is in response to the fact that, not only has a third of the Senate as a whole endorsed his main competition, current vice-chair of the Fed Janet Yelin, but the committee that he needed to get through just to reach the main vote made it clear that it would not be an easy task.
In an interesting turn of events, the markets had a bullish response to the news.
Watch the report, courtesy of CNN: