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Obama takes centre stage in battle to save sinking US economy

Barack Obama will today place himself at the centre of the global economic crisis by announcing the team given the task of navigating the US and the world out of the financial mess and implementing one of the most ambitious public spending programmes since Franklin Roosevelt's New Deal.Obama's transition team, seeking to calm the fears of Americans alarmed about jobs, homes and pensions, said yesterday the president-elect wanted Congress to have a two-year economic aid plan of spending and new tax cuts ready for him to enact into law when he takes over from George Bush on January 20.Today Obama will join his vice-president-elect, Joe Biden, at a press conference in Chicago to formally introduce his economics team. Tim Geithner, president of the Federal Reserve bank of New York, is to be the new treasury secretary, and Larry Summers, who was treasury secretary under Bill Clinton, will be the new White House economics adviser.Obama officials also confirmed that Bill Richardson, the governor of New Mexico, would take the third economic slot, as commerce secretary, though the formal announcement may be made separately.The new team is planning a huge injection of cash into the economy by sponsoring a nationwide rebuilding of roads, bridges, sewage systems and other public works, as well as the promotion of new jobs in the energy field, developing alternative fuel sources and more efficient usage. Obama aides said the programme could save or create 2.5m jobs by the end of 2010. No figure has been put on spending, though economists and members of Congress have been speculating that it could be between $500bn-$700bn, separate from the Bush administration's $700bn bail-out of the finance, insurance and mortgage industries.In October, Obama mentioned $175bn, but the economy has since deteriorated drastically, with the banking giant Citigroup becoming the latest institution to haemorrhage investor confidence.The new Congress, with bigger Democratic majorities in both the House of Representatives and the Senate, is due to meet about a fortnight before the inauguration. Obama's team wants Congress to use that time to put together the necessary legislation, and key Democrats in Congress said yesterday work was already under way.Obama's announcement of his team today will take some of the heat out of criticism last week that while the names of other cabinet posts were either disclosed or leaked, the most important ones - dealing with the economy - were not. The criticism was fuelled in part by a perception that there is a drift in Washington, with Bush, so close to retirement, not rising to the economic challenges.With Obama's economics team in place, the shape of the cabinet is becoming much clearer. Hillary Clinton is expected to be formally announced as secretary of state after Thursday's Thanksgiving holiday.David Axelrod, who was Obama's campaign strategist and is about to become a senior White House adviser, was yesterday asked on ABC television about the relationship she might enjoy with Obama, who beat her in a heavily-contested battle for the Democratic nomination. He said all the members of the cabinet "are not going to be potted plants... They are going to be partners with him in governance and he is going to encourage that."Geithner and Summers are veterans of Bill Clinton's administration, as are others in the cabinet. Richardson, the Latino governor of New Mexico, served under Clinton as energy secretary.Axelrod and other Obama's aides have attempted to deflect muted criticism that Obama was elected on a promise of change, as a Washington outsider, but is now appointing Clinton administration politicians and officials with 20 years or more experience of Washington.Obama's team make comparisons with a coach taking over a sports team and taking it in a new direction. Axelrod told the New York Times: "He's not looking for people to give him a vision. He's going to put together an administration of people who can effectuate his vision."The dynamics in the cabinet are intriguing. Among many potential relationships to be watched is that between Richardson and Hillary Clinton. Richardson was close to the Clintons, but they fell out during the Democratic presidential nomination battle when he switched support to Obama.US economyObama White HouseUnited Statesguardian.co.uk © Guardian News & Media Limited 2008 | Use of this content is subject to our Terms & Conditions | More Feeds

U.S. House panel backs Waxman as energy chairman

A champion in the fight against global warming narrowly beat a defender of the U.S. auto industry on Wednesday in a preliminary battle to head the U.S. House of Representatives Energy and Commerce Committee.