Who will replace Bernanke as the next Fed Chairman? (Part 1)
Because Bernanke will step down, there’s great speculation on who will replace him
Current Fed Chairman Ben Bernanke pointed out two names.
- Larry Summers
- Janet Yellen
Larry Summers is a former Secretary of the Treasury under Bill Clinton from 1999 to 2001. Most recently, he was the Director of the U.S. National Economic Council until the end of 2010, at which point he returned to Harvard University, where he had formerly been president.
Summers had a number of scandals that have followed him through the years. One included controversial statements about the unavailability or unsuitability of women in scientific disciplines during his time as Harvard president. Another scandal was about a leaked memo on dumping waste in undeveloped countries during his time at the World Bank. These are two examples, among others.
Summers isn’t clearly defined as either a hawk or a dove1. Some view this ambiguity as an advantage, since he would have the credibility to keep rates low for a longer period without enflaming market fears.
Read on to read about Janet Yellen
Continue to Part 2
- Hawks advocate for higher rates to curve inflation, while doves advocate for lower rates to help promote growth. ↩