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Race for Ben Bernanke's replacement is heating up democratic senators are circulating a letter urging the president nominate fed vice chair Janet Yellen.
These lawmakers say they're concerned about the possible nomination of Larry Summers who they do not like he of course former director of the National Economic Council.
So who will head to the Fed joining us now.
Is -- reporter who is considered a fed insider job hills and -- chief economics correspondent for the Wall Street Journal along with Fox Business is very own.
Rich -- John that we should say that you have so many -- breaking stories on this this issue all the time and they're always on point so let's get right to.
The leadership here and -- are we right to say.
Because all the articles say it's either Janet Yellen or Larry Summers are we missing somebody let me come out on that 11.
Well you know that's a really good question if this story has gotten so hot this week and there is a possibility that the -- just kind of -- each other up.
And some third candidate comes in -- odds of getting the job so you know when we've been writing about this we've been talking about how there are other people who -- potentially on the list.
One got to look at spurs' Tim Tim Geithner.
Another guy named Roger Ferguson who used to be and number two at the -- But right now he's really Allen and Summers who I think we have to keep and I am but it.
Isn't this summer picked kind of a faint John maybe I'm wrong but -- it seems that Janet Yellen is so much more Obama asked.
In her extreme dumbest things I mean Larry Summers.
Kind of kind of queasy about the whole idea continue to do too much longer.
He's he's known as sort of a centrist Democrat she of course is far to -- -- on monetary policy but also.
Her husband and she harassment to Nobel Prize reconnaissance spoken out against global warming and about how we have to do more -- -- -- she -- be more Obama yes you know she's very she's she's very low.
-- there's no question about apple this is one of the things that's so fascinating about this story is.
For Summers is inside the White House some of Obama's.
Closest advisors Jack -- Gene Sperling these are people.
Who have had long relationships.
With what Obama I'm sorry with Summers and Obama does too we -- -- worked for Obama in the early part of his administration.
For yelling are outside of the White House garden -- up on Capitol Hill for instance.
And when we talk to people in the market's most of them say they'd rather have.
A -- and that is Summers in part because.
A -- means continuity you know if you're in the market you want to see these you know.
What else did so let's face -- let's face it it's really because yellen is likely to print more money right.
I've certainly that's something that stock investors would like you know I would think that bond investors might get a little worried about inflation if they thought she was going to be -- -- -- And we don't we don't hear a lot of that it -- at this point but that's definitely one of the knocks on her and you know so what are the arguments is that.
Because she showed obvious she's so tolerant of prices going higher.
That she would have to earn -- stripes in the markets.
And the and and tighten policy sooner than a lot.
-- -- she's earned her stripes rich -- with some senators some democratic senators who have been circulating a letter that that I believe they've sent to the president have you read the letter what does it say why don't they like Janet.
Yeah blowing up the letter right here Liz thanks to our top producer Sylvia all those obtained inside and basically what you're looking at here.
There's no direct shot at Larry Summers here very complimentary of -- yelling.
Basically saying that it speaks to her independence intellectual rigor and willingness to challenge conventional wisdom.
Trades essential for a successful Fed -- -- that may be more than anything maybe they'll show you.
Larry Summers do you think any of them and and this is to Jon Mills and -- as well don't like Larry Summers because he was a part.
Of getting rid of Glass-Steagall.
The regulation that separated banks from the investment arms of banks and was long as that was in place we never had a dramatic financial crisis the likes of which we saw when it was finally got -- up.
Though the line that I read right there is anything that was it a veiled shot to Larry Summers there's no direct link to him in this letter it's all pro yellen letter.
These are the more liberal democratic senators who have written -- -- President Obama that's their concern and many of them had similar concerns.
With Fed Chairman Ben Bernanke -- his -- confirmation -- he did lose eleven Democrats because of problems on the left not the senator I.
I think that -- -- regulation bank supervision is a big subtext of this as it as it advances not only was.
Summers in the treasury when when it was deregulating under the Clinton administration.
But you know he's got close associations with -- Wall Street this is something we're working on right now but he's advised hedge funds he's advised advise banks.
And -- that there's this revolving door question I think he's gonna have to answer.
Yellen is an academic and a -- person that's what she's done her whole life she doesn't have to answer that question but this is.
The whole question about Bob Summers would perform as a bank regulator is also a very big part of this.
Either way there's one final point to be made here John and that is that you never know exactly.
What a person will do once they become the chair Paul Volcker remember who was the hawking is talk that this ever existed in that job at least in my lifetime.
Was appointed by Jimmy Carter who -- -- look like easy money so you never quite know what you're gonna get right.
Absolutely that's what I think we know what we're gonna get -- -- and you know she's been very supportive of these Fed's easy money policies.
We don't know what we're gonna get with Summers.
Summers is known as a clever guy but.
Not someone who's really spoken out very aggressively about what the feds doing.
Good to see both of you John -- -- and rich at some thanks so much thanks guys a lot.
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