Obama’s team will confront an economic crisis that continues to deepen in spite of hundreds of billions of dollars in federal emergency spending in recent weeks. In the latest bailout, the U.S. government announced late Sunday it had agreed to shoulder hundreds of billions of dollars in possible losses at the banking giant Citigroup, and to put a fresh $20 billion into the stricken company. Presidente election Barack Obama explain his plan but declined to say how big a spending package he wants to revive the economy, adding that he was awaiting a recommendation from his economic team. Some Democratic lawmakers are speculating about a two-year measure as large as $700 billion. Obama would only say that “it’s going to be costly.”
Who are the people whose advice will be based Barack Obama?
The first named by president-elect was Timothy Geithner, the New York Federal Reserve president, as his treasury secretary. Geithner was born in Brooklyn, New York City, the son of Deborah and Peter F. Geithner of Larchmont, New York. He completed high school at International School Bangkok, Thailand, and then attended Dartmouth College, graduating with a A.B. in government and Asian studies in 1983. He obtained an M.A. in International Economics and East Asian Studies from Johns Hopkins University’s School of Advanced International Studies in 1985. After completing his studies, Geithner worked for Kissinger and Associates in Washington, D.C., for three years and then joined the International Affairs division of the U.S. Treasury Department in 1988. He was deputy assistant secretary for international monetary and financial policy (1995–1996), senior deputy assistant secretary for international affairs (1996-1997), assistant secretary for international affairs (1997–1998). He was Under Secretary of the Treasury for International Affairs (1998–2001) under Treasury Secretaries Robert Rubin and Lawrence Summers. Summers was his mentor, but other sources call him a Rubin protégé. In 2002 he left the Treasury to join the Council on Foreign Relations as a Senior Fellow in the International Economics department. At the International Monetary Fund he was director of the Policy Development and Review Department (2001-2003). In October 2003, he was named president of the Federal Reserve Bank of New York. Once at the New York Fed, he became Vice Chairman of the Federal Open Market Committee component. In 2006, he also became a member of the Washington-based financial advisory body, the Group of Thirty. In March 2008, he arranged the rescue and sale of Bear Stearns. As a Treasury official, he helped manage multiple international crisis of the 1990s in Brazil, Mexico, Indonesia, South Korea and Thailand. Geithner believes, along with Hank Paulson, that the Treasury Department needs new authority to experiment with responses to the financial crisis of 2008.
Geithner, will team with Lawrence Summers, a treasury secretary under former President Bill Clinton and former Harvard University president, who will take over the National Economic Council. Summers born in New Haven, Connecticut, on November 30, 1954, Summers is the son of two economists – both professors at the University of Pennsylvania – as well as the nephew of two Nobel laureates in economics: Paul Samuelson (sibling of father Robert Summers, who, following an older brother’s example, changed the family name from Samuelson to Summers) and Kenneth Arrow (his mother Anita Summers’s brother). He spent most of his childhood in Penn Valley, Pennsylvania, a suburb of Philadelphia, where he attended Harriton High School. At age 16, he entered the Massachusetts Institute of Technology (MIT), where he originally intended to study physics but soon switched to economics (S.B., 1975). He was also an active member of the MIT debating team. He attended Harvard University as a graduate student (Ph.D., 1982), where he studied under economist Martin Feldstein. He has had stints teaching at both MIT and Harvard. In 1983, at age 28, Summers became one of the youngest tenured professors in Harvard’s history. In December 2005, Summers married a Harvard English professor, Dr. Elisa New. Summers has three children by his first wife, Victoria Perry.
Obama also named three others members on his economic team:
Christina Romer as director of the Council of Economic Advisers. Romer is a U.C. Berkeley professor of economics, and co-director of monetary economics at the National Bureau of Economic Research.
Melody Barnes as director of the Domestic Policy Council. She has been co-director of the Agency Review Working Group for the Obama transition team, and also served as the senior domestic policy advisor to Obama during the campaign. Barnes previously worked at the Center for American Progress and as chief counsel to Sen. Ted Kennedy.
Heather Higginbottom as deputy director of the Domestic Policy Council. She was Obama’s policy director during the campaign and earlier served as Sen. John Kerry’s legislative director.
Conform CBC, over the last weekend, Obama directed his team to construct a plan to create 2.5 million new jobs by the end of 2010, and aides said his broader economic program was designed to quickly offer tax relief to lower- and middle-income earners.