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10 Sep 2013
Syrian fallout could dictate next Fed Chairman
FXstreet.com (Lisbon) - The recent uphill battle to convince the U.S. Congress to authorize a military strike against Syria could ultimately make it more difficult for President Barack Obama to nominate his former economic adviser Lawrence Summers as the next chairman of the Federal Reserve.
Indeed, Summers, widely seen as Obama's top choice to replace Fed chief Ben Bernanke when his term ends in January, is publicly opposed by a number of liberal Democratic senators, who prefer Fed Vice Chair Janet Yellen for the job though Obama may push ahead with Summers regardless.
However, if the president allots limited or an insufficient level political capital to secure the support of liberals for a military strike on Syria – as appears likely – it may not leave enough ammunition to push Summers' nomination through the Senate. "Summers would be my first choice, but it doesn't look like he can fight his way through," noted Bill Frenzel, a former Republican lawmaker who is now with the Brookings Institution in Washington.
Obama faces a crucial test of his presidency in trying to win congressional backing for military strikes against Syria in response to an alleged chemical weapons attack on August 21 that the United States has blamed on President Bashar al-Assad.
A Reuters/IPSOS poll on Monday showed only 16 percent of Americans support military action and there is little appetite among the left wing of the president's own party for the United States to become involved in another conflict after a decade of wars in Iraq and Afghanistan.
"If I were advising the president, I would say: 'Your reputation is at stake. The United States' reputation is on the line. You have got to do everything you can to get the Syria approval from the Congress. If it means you are going to lose something later, too damn bad, because you need this right now,'" said Frenzel, who served in Congress for 20 years.
Indeed, Summers, widely seen as Obama's top choice to replace Fed chief Ben Bernanke when his term ends in January, is publicly opposed by a number of liberal Democratic senators, who prefer Fed Vice Chair Janet Yellen for the job though Obama may push ahead with Summers regardless.
However, if the president allots limited or an insufficient level political capital to secure the support of liberals for a military strike on Syria – as appears likely – it may not leave enough ammunition to push Summers' nomination through the Senate. "Summers would be my first choice, but it doesn't look like he can fight his way through," noted Bill Frenzel, a former Republican lawmaker who is now with the Brookings Institution in Washington.
Obama faces a crucial test of his presidency in trying to win congressional backing for military strikes against Syria in response to an alleged chemical weapons attack on August 21 that the United States has blamed on President Bashar al-Assad.
A Reuters/IPSOS poll on Monday showed only 16 percent of Americans support military action and there is little appetite among the left wing of the president's own party for the United States to become involved in another conflict after a decade of wars in Iraq and Afghanistan.
"If I were advising the president, I would say: 'Your reputation is at stake. The United States' reputation is on the line. You have got to do everything you can to get the Syria approval from the Congress. If it means you are going to lose something later, too damn bad, because you need this right now,'" said Frenzel, who served in Congress for 20 years.