Donald Kohn stays at number three so as not to give him the impression he might get the job.
Federal Reserve Vice Chairwoman Janet Yellen emerged as the front-runner to become President Barack Obama's nominee to lead the central bank after Lawrence Summers pulled out of the contest amid stiff congressional resistance, according to people familiar with the process. Mr. Obama in June mentioned three final candidates for the job in a closed-door meeting with lawmakers—Ms. Yellen, Mr. Summers, and former Fed Vice Chairman Donald Kohn, but Ms. Yellen and Mr. Summers have long been seen as the two leading candidates. The process for selecting a nominee isn't starting over, senior administration officials said Monday, and no new candidates for the position have been added to the mix. The only difference now is that Mr. Summers is no longer being considered. An announcement won't happen this week, officials said.