All indications are that Ben Bernanke has begun tapering down his days as Fed chief as his second term ends on Jan. 31 of next year.
President Obama for now doesn’t seem too dismayed and has begun his search for a successor.
While Bernanke has not publicly announced his intentions, he has reportedly told friends he’s had enough.
One clear sign that may be true: He has chosen not to attend the Jackson Hole economics meeting. Traditionally, the Fed chairman’s speech is the keynote of the event.
The replacement names are ferociously flying around Washington and Wall Street because never before has a new Fed chair had to tackle so much.
The two favorites being discussed most frequently are Janet Yellen and Lawrence Summers. Both are smart, capable people, but a new name has recently surfaced, as the administration has received push-back from the Hill on Summers and Yellen: former Treasury Secretary Tim Geithner.
Geithner (who is also an ex-New York Fed president, essentially the second-most powerful spot behind the chairman) as of now is just supposedly “advising” the president on the choice.
And while he’s apparently pushing very hard for Summers, it shouldn’t be a surprise if Geithner pulls a Dick Cheney and says he’s the most qualified for the post.
Geithner has said that he isn’t particularly interested, but like him or not it’s hard to argue against his résumé and qualifications. And he is moderate enough and has enough stature on the world stage to make it through the confirmation process. He is also very close to Obama.
While the administration has said that it is looking to hold off nominating someone until the fall, my money is on the president persuading Geithner to take the job.
Of course, the president could ask Bernanke to stay, but that seems unlikely. And besides, everyone knows the best way to get a job in Washington is to say that you’re not interested.