No link yet, WSJ.com has this as breaking news banner.
link(although it's behind the paywall).
This is great news and not that surprising, with word that up to 4 Senate banking committee Democrats were going to oppose Summers. That means he would need significant GOP support, and I doubt that was happening.
The current vice chair, Janet Yellen, is the clear frontrunner now. She is definitely qualified, and would make history as the first female Fed chair. In fact, I think no woman has been the leader of any central bank in any major Western country.
But it's possible the WH might go with someone else.
Two possibilities: Two former Fed vice chairs, Roger Ferguson and Donald Kohn. Ferguson was named to the Fed Board of Governor by President Clinton and served as vice chair of 7 years. He is currently President and CEO of TIAA-CREF If selected, he would be the first African American Fed Chair.
Kohn was Yellen's predecessor as vice chair, and had been a Fed official for decades before leaving in 2010. Obama had mentioned that Kohn was under consideration for chairman during a meeting with House Dems.
I'd prefer Yellen, but any of these three would probably be fine. Much better than Summers substantively and with a clearer path to confirmation.
It's amazing what a difference a couple of weeks can make. Two weeks, you had two major potential headaches for the WH: A contentious Fed nomination and Syria.
Syria is at least temporarily off the table with the diplomatic breakthrough, and now it looks like they are in a better position for the Fed chair nomination as well.
More Fed speculation:
In addition to chair, it looks Obama will have to make at least 2 more(and potentially up to 4) nominations to the Fed's 7 member Board of Governors in the next year.
Vice Chair: Obviously, if Yellen is selected as Chair, this seat is vacant. If she isnt selected, it's possibly she leaves when her term expires in Oct 2014.
Elizabeth Duke: A Bush appointee whose term has ended. She stepped down last month.
Sarah Raskin: An Obama appointee who has been nominated as Deputy Treasury Secretary.
Jerome Powell: An Obama appointee whose term ends Jan 31 2014. It's not known if Obama will renominate him.
Given the departures of two, and potentially all three female Fed board members, WaPo notes that two women are under consideration for vacant posts(in addition to Yellen): Lael Brainard, a top Treasury official and Janice Eberly, a former senior economist for Treasury and currently a Professor at Northwestern.
WSJ has posted Summers letter here(PDF).
And WH has a statement. That was quick.