Summers pulls out of race for top Fed position

Lawrence Summers was the leading candidate to take over as head of the Federal Reserve.

Lawrence Summers, who was considered the leading candidate to replace current US Federal Reserve Chairman Ben Bernanke, has withdrawn his name from consideration.

In a statement, President Barack Obama said he had accepted Summers' decision.

"Larry was a critical member of my team as we faced down the worst economic crisis since the Great Depression, and it was in no small part because of his expertise, wisdom and leadership that we wrestled the economy back to growth and made the kind of progress we are seeing today," Obama said.

As director of the National Economic Council, Summers oversaw the administration's response to the economic and financial crisis early in Obama's first term.

Still, Summers faced opposition from some Democrats, including members of the Senate Banking Committee. Summers alluded to the opposition to his candidacy in a letter he sent to Obama on Sunday to formally withdraw from consideration.

"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 economic recovery," he wrote.

Obama said, "I will always be grateful to Larry for his tireless work and service on behalf of his country, and I look forward to continuing to seek his guidance and counsel in the future."

Summers' decision could make current Fed vice chairwoman Janet Yellen, another candidate on Obama's short list, the leading candidate to replace Bernanke.

Yellen, who became a member of the Fed's board of governors in 1994, would be the first woman to run the Fed.

Obama is expected to announce his nomination as early as this month. Bernanke's term ends on January 31, 2014.

-AP