White House denies Obama set on Summers for Fed chief

The White House is denying a report claiming President Obama has made a decision to nominate Larry Summers as chairman of the Federal Reserve.

White House spokeswoman Amy Brundage dismissed the story in the Japanese newspaper Nikkei that Obama could pick Summers as early as next week. 



Summers, a former Treasury Secretary, and Janet Yellen, the vice chairwoman of the Fed's Board of Governors, are considered leading contenders for the job. Current Fed Chairman Ben Bernanke is expected to leave his post at the end of the year. 

Reuters reported that Nikkei wrote in its Japanese edition that the White House is “in the final stages” of nominating Summers.

Its English edition, quoting unnamed sources, it said the White House “is set to” nominate him.  

A potential Summers nomination could face resistance in Congress. 

In a meeting with lawmakers on Capitol Hill in late July, Obama defended Summers against liberal criticism of his handling of Obama’s economic team in the wake of the financial crisis. 

A number of liberal lawmakers have come out in support of Yellen ahead of Obama’s decision. 

And on Thursday, Sen. John Cornyn (R-Texas) — the No. 2 Republican in the Senate — said he would vote against a Summers’s nomination.

— Updated at 9:03 a.m.