U.S. stocks soared Monday morning after Lawrence Summers, a top candidate to be the next Federal Reserve chair, withdrew his name from consideration, Bloomberg News reports
Among the likely candidates for the position, Summers had been considered a relatively strong advocate for reducing the amount of money the Fed injects into the economy, a stimulus policy known as quantitative easing. Market participants have treated his withdrawal as an indication that the stock market will continue to be bolstered by quantitative easing.
The Dow Jones Industrial Average had risen slightly more than 1% by 11:50 a.m. on Monday. Meanwhile, the U.S. dollar declined, reflecting concerns that continued quantitative easing will decrease the value of the dollar compared to other currencies.