Obama Defends Summers to House Democrats

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July 31 (Bloomberg) -- Rep. Jim Himes discusses to ongoing search for the next Federal Reserve chairman and rewriting the corporate tax code. He speaks on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)

I'm joined by a member of the files -- the house financial service committee.


You for the time.

We have to start with the fed news.

At one point, the president was asked about larry summers.

It was suggested by a lawmaker that larry summers would not be a good idea.

What did the president say in response?

A fairly strong opinion was expressed by one of my colleagues and the president did two things.

He said this has become a washington parlor game.

He said very clearly i have not made a decision and haven't really started the process of thinking about a decision.

He sort of transitions to what you could call a defense of larry summers.

He said i'm not doing this because i'm sending a signal, i'm doing this because if somebody talks smack about you, and that is actually the phrase he used, i would stand up for you.

Larry summers was by my side in 2009 and we made some absolutely brutal decisions.

He said all the people being talked about right now, you have to slice the salami pretty thin to see ideological differences between these people.

He said let me start my process and educate yourself on what's really going on and don't just join the bandwagon.

The body language did not tell you that larry summers would be the fed chief?

Absolutely not grade the body language said i have a lot on my plate and having got there yet.

Please calm down.

Janet yellen, larry summers mentioned as the two leading candidates.

You are on the financial committee.

What do you make of those two choices?

Next head chairman has an unbelievably complicated task.

We hope as the economy improves, the next fed chairman begins to slowly unwind the allen's sheet.

That's a fine tuned mechanism that has to be guided very carefully.

I may have my personal opinions about larry summers or other candidates.

But the ones being talked about, these are highly competent people.

The fed chairman is not going to be working on taxation policy or education policy.

The next fed chairman is a technician, to begin unwinding the balance sheet and a consensus builder.

Needs to work with the fomc to make sure there is a clear message coming out of the fed.

At me ask you about the larger conversation.

We have the president pushing for economic ideas, including a new plan for corporate taxes.

The president was very clear on something creating some alignment in the democratic caucus right now.

The right thing for the country right now is as the deficit plummets at historically rapid rates, the right thing is to begin talking about and doing things that will actually create jobs trade jobs for the middle class.

Immigration, the nsa, sometimes that message gets lost that it's all about jobs.

He made the point that it's so easy to explain to people that if you build a bridge, improve a highway or railway, hundreds of people work on that.

And he did make a political point.

The message on the other side is hard to explain -- if we just cut the budgets are there, more jobs will arrive.

That is hard to explain because it's not true.

What you see happening here is message alignment.

I heard he was cheered when he said he would not negotiate with republicans over the debt ceiling.

America pays its bills.

We don't put a grenade on the table and say america is not going to pay its bill because we want to repeal obamacare.

You can't run a government that way.

Thank you for your time.

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


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