Obama working on economic recovery plan

Obama working on economic recovery plan

Washington: President-elect Barack Obama focused on the teetering US economy as transition officials said he would name a respected Federal Reserve official to the post of treasury secretary on Monday.

Obama also outlined a plan to create 2.5 million jobs rebuilding roads, modernising schools and creating alternative energy sources.

If confirmed by the Senate, Timothy Geithner, 47, president of the New York Federal Reserve, would be the top Cabinet official in charge of leading the administration’s response to the global economic crisis. Word of his likely selection on Friday helped send the Dow Jones Industrials soaring 500 points after several days of steep losses.

Obama also will name Lawrence Summers, a treasury secretary under former President Bill Clinton and the former president of Harvard University, to coordinate the federal response to the economic meltdown across several agencies, transition officials said.

Geithner and Summers were scheduled to appear with Obama at a press conference in Chicago on Monday morning.

As director of the National Economic Council, Summers would help shepherd Obama’s new recovery plan, which aims to create millions of new jobs by January 2011. Obama wants Congress to approve it quickly so he can sign it shortly after his inauguration.

‘‘These aren’t just steps to pull ourselves out of this immediate crisis; these are the long-term investments in our economic future that have been ignored for far too long,’’ Obama said in the weekly Democratic radio address on Saturday.

He called the plan ‘‘big enough to meet the challenges we face’’ and said that it will jump-start job creation and lay the foundation for a strong economy.