Obama’s favourite quits race to head US Fed as opposition grows

Former US treasury secretary Lawrence Summers has withdrawn from consideration to be chairman of the Federal Reserve, saying it would hurt the nation for him to go forward with what would be a contentious confirmation before the US Senate.

“I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interests of the Federal Reserve, the administration, or ultimately, the interests of the nation’s ongoing recovery,” Mr Summers wrote in a letter yesterday to President Barack Obama.

Mr Obama said he accepted Mr Summers’s decision and praised his former economic adviser.