Note: This article was written before the recent changes in candidacy. Nevertheless, it provides a valuable analysis of important factors to consider when evaluating candidates’ credentials.
On September 15 Lawrence Summers unexpectedly withdrew as a candidate for the next Federal Reserve chairman. His letter to Barack Obama stated, ‘I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interests of the Federal Reserve, the Administration, or ultimately, the interests of the nation’s ongoing economic recovery.’ Janet Yellen now faces competition from new candidate Donald Kohn or, some have speculated, an as-yet unnamed economist.
Whether you love or loathe him, there is no question that Ben Bernanke in his last eight years as chairman of the United States Federal Reserve has had his work cut out for him.