Regions

Federal Reserve in turmoil after Summers' withdrawal

Close
September 16
5:28 AM 2013

With hirings at a low and salaries remaining the same, many consumers are very cautious leading many to believe that economic growth still has to pick up.

On Wednesday though, the Federal Reserve is projected to take its first step in the reduction of the extraordinary stimulus that has helped the US economy recover from the worst crisis from the Great Depression. If this is done, the actions of the Federal Reserve would most likely cause a debate and question the decision of the economy is strong enough to manage the stimulus slowdown.

The response though would not be clear for the next few months.

The meeting of the policymakers at the Federal Reserve at the time when there is great uncertainty as to the next chairman to replace Ben Bernanke at the end of his term by January. One of the leading candidates for the job, Lawrence Summers withdrew last Sunday from the race.

The withdrawal opens the door for Janet Yellen, the vice chairman of the Federal Reserve. Once chosen by President Obama and confirmed by the Senate, Yellen would become the first woman to head the Federal Reserve Bank.

© 2022 VCPOST, All rights reserved. Do not reproduce without permission.
Tags
Share

Comments

Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics