Why Hasn't Obama Nominated Yellen to Fed Already?

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Sept. 17 (Bloomberg) -- Bloomberg News' Julianna Goldman reports on the possible time line of a White House announcement of a nominee for Federal Reserve Chairman. She speaks on Bloomberg Television's "In The Loop."

Why the delay in naming her?

That's the question that is adding uncertainty.

According to people familiar with the process, they say janet yellen is the leading candidate and they are not starting the process over from scratch.

The two other candidates other than larry summers obviously are janet yellen and the former fed vice chairman don cohen.

There is a lot of resentment inside the white house months backers of larry summers and outside the white house from advisers who feel like janet yellen supporters undermined his credibility.

They are cautious of making this look like the president's hand is being forced.

That's why some are saying nothing is for certain.

The president could pick somebody other than janet yellen.

That would be pretty difficult since another choice would look like an anti--- yellen puiick, what is the timeline?

It would be surprising if this announcement came next week.

If you look at the calendar, the president is at the united nations general assembly annual meeting monday-tuesday.

The white house has said the president would wait until the fall to make his decision and that begins sunday, september 22 but he will be in new york monday and tuesday and the person familiar with the situation said they would be surprised that you may not see something by the middle to end of next week.

What did obama's top aides recommend?

There was a split and this came down to what kind of fight you would see in congress and how much capital it was worth spending on this fight.

You had chief of staff denis mcdonough and valerie jarrett on the side of encouraging the president not to spend this capital and of the other side, you had the sentimentalists , the officials including most of the economic team, who have worked side-by-side with larry summers and served in the trenches with him at the peak of the financial crisis and felt this was something they owed to him and he was the best person for the job.

All along, people say the conversations inside the white house about the fed pick were between yellen and summers and they are both candidates but the economic team said that summers was the better candidate.

Thank you.

This afternoon, fed officials begin their two-day policy meeting forecast to end with an announcement they are cutting back with their qe3 bond buying program.

Michael mckee has more.

Back in may when ben bernanke first started talking about tapering, he said it would be data dependent.

The data is not so hot on the tapering seems to be coming anyway.

The 10- year note yield is already priced into the treasury market and nobody from the fed core has suggested investors are wrong.

No move would be seen as a huge surprise.

The question is how they can explain it.

Job creation has slowed and retail sales have been week and the rules -- and the back to school season has been disappointing.

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


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