At least three Democrats on the Senate Banking Committee are expected to oppose Lawrence Summers if he is nominated to become Federal Reserve chairman, setting up a razor-thin vote to determine who will lead the central bank at a critical moment for its easy-money policies, The Wall Street Journal reported today. Democrats hold a two-vote majority on the 22-member panel, so the loss of three Democrats would make it impossible for Summers to advance to the full Senate for a confirmation vote without the backing of some of the 10 Republicans. No Republican has publicly expressed support so far for any potential White House nominee for Fed chief, giving President Obama little margin for error. The committee Democrats expected to oppose Summers are Jeff Merkley of Oregon, Sherrod Brown of Ohio and Elizabeth Warren of Massachusetts. The banking committee is the panel that will hold confirmation hearings on the nominee and vote on whether to send him or her to face a final vote in the 100-member Senate. President Obama has said the candidates he is considering include Mr. Summers, Fed Vice Chairwoman Janet Yellen and former Fed Vice Chairman Donald Kohn. President Obama will announce his choice for the job sometime after Congress returns from recess on Sept. 9. Read more (subscription required).
