Polarising: Larry Summers. Photo: Bloomberg
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Investors took the withdrawal overnight of former Treasury Secretary Larry Summers as a candidate to head the US Federal Reserve as a green light for risk, betting the bank's next chief would extend an era of easy money that has flooded global markets with cash.
Markets viewed Summers' move as leaving Fed number two Janet Yellen, a well-known advocate of looser monetary policy to support the US recovery, the favourite to take the chairmanship.