Why Did Larry Summers Quit Fed Chair Race?

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Sept.16 (Bloomberg) -- Lawrence Summers’withdrawal as a candidate for Federal Reserve chairman came after an unprecedented campaign to stop a Fed nominee even before he was announced, spearheaded by Democratic senators who took on a president of their own party. Julianna Goldman reports on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)

Growing concern from democratic senators.

Julianna goldman joins us now.

Walk us through this thinking.

First of all, this came in a phone call yesterday from larry summers to the president and the official letter telling the president he was withdrawing his name.

I talked to a bunch of people who were close to the process, they essentially said that somersault both writing on the wall, that the numbers were not just -- that the numbers were just not there and there was a perfect storm of sorts that ended his bid.

One, time was not on his side.

His name was out there all summer and the white house had not launched an effective strategy or campaign to respond to attacks against him, and to really set him up for confirmation process.

Then you had serious, and the white house was distracted from that.

Democratic senators saying they would not support him.

The white house still not responding to that.

Then you look ahead to the fall and the budget fights and the big fight shaping up over funding the government, but that feeling and was just emerging as collateral damage.

Wended larry summers know this was going the wrong way for him?

Summers have been saying this for quite some time, and the white house was starting to see this.

There was a drumbeat of democratic senators coming out.

Senators jeff merkley, sharon brown.

Also, last week the white house knew that a elizabeth warren, democrat of massachusetts, was a no vote but was voting -- but was waiting to announce that.

This was the democrats own making.

They prevented this.

That was the real question, whether he would even get out of the banking committee.

You already had four democrats say they would not support him.

Once you get that, you have to rely on republican support.

Again, we all see how washington is working these days, and it is a tough white -- but tough fight.

Stocks and bonds are soaring on part in the news about larry summers.

Michael mckee joining us with the real deal on what the withdrawal means.

This text has been automatically generated. It may not be 100% accurate.


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