Larry Summers May Be Leaving Administration

Charles Gasparino Fox Business March 26, 2010

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By Charles Gasparino FOXBusiness .ybuzz { float: right; margin-top: -4px; margin-left: -2px; } // get ybuzz li to show up properly on the right

The conventional wisdom in Washington and on Wall Street has been that Treasury Secretary Tim Geithner -- the target of populist outrage over Wall Street bailouts and high unemployment -- would be the first to leave the Obama administration's economic team after the mid-term elections. But the FOX Business Network has learned that another high-ranking economic adviser may be first.

Larry Summers, who heads the White House's National Economic Council, has been described as unhappy in his job, and is suggesting in conversations that he may leave the administration by the end of the year, according to Wall Street executives who deal directly with key members of President Obama's economic team.

White House press secretary Robert Gibbs told FBN that Summers isn't going anywhere, at least for now.

Summers' possible departure comes after the president's recent push for the passage of health care, which was controversial even inside the administration, where some advisers worried about the massive costs of the overhaul and its impact on the burgeoning budget deficit. The administration has touted a Congressional Budget Office report stating that the proposal would save $138 billion over the next decade, but Republican critics point to the numerous assumptions in the analysis. Summers was both Deputy Secretary of the Treasury and Treasury Secretary during the Clinton administration, which boasted deficit reduction as one of its biggest economic achievements.

It's unclear why Summers might be looking to leave the administration "” though there's been some speculation that he wanted to be appointed Federal Reserve Chairman. President Obama recently supported Ben Bernanke's Congressional approval for a second term as Fed chief.

Wall Street executives who deal with Summers say they believe he isn't being forced out. Others say his fate, like that of Treasury Secretary Tim Geithner, would likely depend on the outcome of the mid-term elections, particularly if the Republicans gain seats or take control of Congress and unemployment remains high.

Peter Barnes contributed to this report

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