Dean Baker: The Return of Larry Summers?

According to accounts in the business press, there is a campaign among Washington insiders to get Larry Summers appointed as Ben Bernanke’s replacement as Federal Reserve Board chair. This could end up being the scariest horror movie of the summer.

It is bizarre that Summers would be seriously considered as the next Fed chair if for no other reason that there is an obvious replacement for Bernanke already sitting at the Fed. Janet Yellen, the vice-chair, has in the past served as the president of the Federal Reserve Bank of San Francisco, a member of the Board of Governors in the 1990s and head of President Clinton’s Council of Economic Advisers. She also has an impressive academic background, having been a professor at both Berkeley and Harvard.