Summers’ retreat paints markets in green

Larry Summers withdrawal

The decision of Summers (President Obama’s favourite candidate) to withdraw his candidacy as President of the central bank of the United States has been welcomed by both Asian and European markets. Now all indexes are going up smoothly.

Summers took this decision because he didn’t find enough support from President Obama’s Democratic Party, which would make it almost impossible an approval of the American Senate. Be that as it may, investors have always preferred the other candidate, Janet Yellen -current Vice-president of the Federal Reserve (FED), because they consider her more “dovish” than “hawkish”. Moreover, they have rejected Summers because they believe his résumé and his past “are not appropriate” to fill an office where the independence of criteria is essential. Such independence is doubtful in Summers’ case.

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