Obama promises economic rescue
2008-11-07 22:19
Chicago - President-elect Barack Obama on Friday said he would act "swiftly" as soon as he takes office to confront the economic crisis head on, during his first news conference since his historic election.
"We are facing the greatest economic challenge of our lifetime. We will have to act swiftly to resolve it," Obama said after meeting his team of 17 heavy-hitting economic advisors.
"Immediately after I become president, I will confront this economic crisis head on by taking all necessary steps to ease the credit crisis, help hard-working families and restore growth and prosperity."
Obama's meeting and press conference came with the president-elect under pressure to establish the direction of his economic and fiscal policy before he inherits the recession-bound economy after his inauguration on January 20.
Move quickly
Earlier on Friday, the government said the US unemployment rate rose to its highest level since 1994 in October, at 6.5%.
The Labour Department said 240 000 jobs had been cut in October, the 10th straight month of job losses, and new revisions meant that a whopping 651 000 workers have lost their livelihoods in the past three months alone.
Ahead of the advisory meeting, speculation was rife that Obama would move quickly to reassure jittery markets by announcing his pick for Treasury secretary.
But Obama's aides said there would be "no personnel announcements" on Friday, following the incoming president's selection on Thursday of combative Illinois congressman Rahm Emanuel as his White House chief of staff.
Obama started his third day as president-elect with a parent-teacher meeting at his two daughters' school with his wife Michelle, a reminder that the next First Family will be the youngest in decades.
He was to hold more meetings to plan his transition to the White House, receive a now-daily classified intelligence briefing from the CIA, and record the weekly Democratic radio address airing on Saturday.
Getting economy in shape
One of Obama's most urgent priorities will be to wind down Bush's war in Iraq and redirect the military focus to hunting down Al-Qaeda and the Taliban in Afghanistan.
But getting the US economy back in shape will be priority number one for the freshman senator from Illinois, who at 47 will be the fifth youngest US president to take office.
Momentum for a tax and spending plan to boost the flagging US economy is growing after the election of Obama, who has supported rapid approval of a quick stimulus package by the outgoing Congress.
House of Representatives Speaker Nancy Pelosi called in an interview published in The Wall Street Journal on Friday for a two-stage effort involving a 60-100 billion dollar stimulus deal in November.
The California Democrat urged Congress to work together with the White House in the last days of Bush's term to pass the measure, the second such plan after a 150-billion-dollar package was adopted in February this year.
Several names mentioned as potential Treasury overseers to command a 700-billion-dollar banking bailout were to attend the meeting later Friday with Obama and his vice president-elect Joseph Biden.
"The Transition Economic Advisory Board will help guide the work of the Obama-Biden transition team in developing a strong set of policies to respond to the economic crisis," a statement from Obama's office said.
The panel also includes former US Treasury secretary Robert Rubin, Michigan Governor Jennifer Granholm, former Clinton administration Labour secretary Robert Reich and Eric Schmidt, chairman and CEO of Google.
Billionaire financier Warren Buffett was set to join the talks by telephone.