White House economic adviser Larry Summers will return to Harvard

Summers, the director of the National Economic Council and an assistant to the president for economic policy, has been a key voice in shaping President Barack Obama’s economic policies during the first two years of his administration.

Summers was secretary of the Treasury under President Bill Clinton and chief economist of the World Bank. From July 2001 until June 2006, he was Harvard’s president. He resigned in 2006 amid controversies concerning Cornel West GS ’80 — who left Harvard to become a religion professor at Princeton — and comments he made suggesting that innate genetic differences between the sexes might contribute to the lack of women in high-level positions in science and engineering.

Following his resignation and a one-year sabbatical, Summers returned to Harvard as a professor and joined investment and technology development firm D. E. Shaw & Co. as a part-time managing director.

Since being tapped by Obama in 2009, Summers has played a significant role in shaping the administration’s economic policies. He pushed for last year’s economic stimulus bill and aggressive moves to prop up the financial sector, as well as the bailout of American automobile manufacturers and the administration’s mortgage relief plan. He also played a key role in advising Obama on the financial reform legislation that was signed into law in July.

Summers, who is known for his confidence and strong personality, has also stirred controversy in his current position. Liberal economists, led by Wilson School professor Paul Krugman in his New York Times column, have accused Summers of favoring corporate interests over populist policies. He also came under fire for accepting perks from Citigroup and millions of dollars from various companies impacted by White House policies.

— Nava Friedman