Chicago: President-elect Barack Obama takes his first major step toward addressing the US financial crisis on Monday, presenting the team that will steer his economic policies and navigate a potentially deep recession.
Obama, who takes over for President George W. Bush on 20 January, announces his appointments at 10:30pm (IST) news conference, with financial markets watching for specifics about his plans to stimulate the economy and save jobs.
Obama also is likely to be quizzed about his thoughts on bailing out US auto producers and other companies in his first economic test since winning the 4 November election.
The scope of the economic crisis has widened in the 20 days since Obama’s White House win. Auto companies warned they were short on cash, unemployment numbers rose, and Citigroup took the US government on as a shareholder.
“The stakes are high,” said Julian Zelizer, professor of history and public affairs at Princeton University.
Except for one short news conference, Obama has kept a low public profile since his victory over Republican John McCain, remaining in Chicago to pick his Cabinet but not formally announcing any of his choices.
By breaking that near-silence with the unveiling of his economic team, Obama signaled the priority he places on addressing the worst economic crisis since the Great Depression.
The big players on his team are already known.
Timothy Geithner, 47, president of the New York Federal Reserve Bank, will become Treasury secretary, and Lawrence Summers, 53, a former Treasury secretary under President Bill Clinton, will be director of the National Economic Council.
US stocks rallied late on Friday after news leaks about Geithner’s appointment.
In addition to personnel, Obama has laid the groundwork for a massive new two-year economic stimulus package, which he proposed on Saturday, combining middle-class tax cuts and spending on infrastructure to help save 2.5 million jobs.
Obama did not spell out the size of the package, but top Democrats said it could cost hundreds of billions of dollars.