Obama has thrown the Fed Chair race into a tizzy with his posing former Vice Chair, Donald Kohn, as the third person under consideration to succeed Chairman Ben at the Fed, along with Janet Yellen and Lawrence Summers. Pretty clearly he likes and wants Summers and is ticked that the trial balloon for Summers resulted in a massive and widespread denunciation of him and fervent defense of Janet Yellen and her candidacy. He and his Summers-Rubin-cronies advisers have had to beat a strategic retreat, noting no decision until fall.
As it is, I think that the Kohn balloon is not for real. This is a scam to advance the candidacy of Summers over Yellen. Well, maybe not a total scam. Clearly Kohn's vast experience at the Fed makes him a serious candidate. But he has advantages that Yellen has, that vast experience at the Fed especially, an issue that has been used against Summers. So, bringing him in presumably undercuts Yellen by drawing off support from the hardcore Fed crowd. Furthermore, he has a reputation for being more conservative than Summers, if that descriptor even means anything anymore in connection with the Fed. Given that Yellen is being labeled as a liberal dove who is backed by the liberal wing of Dem senators (with the WSJ whining about the danger of a "female-backed currency," eeeek!), this makes Summers the centrist, supposedly making him acceptable to liberals if Kohn appears to be the real alternative to Yellen.
So, there it is. I think that Gene Sperling has convinced Obama that bringing in Kohn will help the candidacy of Summer, and I think they may be right. The game is getting dirtier by the minute.