Pledging to boost his country’s faltering economy, US President-elect Barack Obama has introduced the team that will help him navigate the global financial crisis.
Warning again that the situation will likely get worse before it gets better, Obama has promised a costly stimulus package next year.
“Right now, our economy is trapped in a vicious circle: the turmoil on Wall Street means a new round of belt-tightening for families and businesses on Main Street – and as folks produce less and consume less, that just deepens the problems in our financial markets,” he said on Monday.
Obama’s team includes New York Fed president Timothy Geithner at the Treasury and former Treasury Secretary Lawrence Summers as Director of the National Economic Council.
“Obama recognizes that we face an incredible financial emergency and so he’s surrounding himself with people who have experience, including some people who have worked on the financial rescue package,” said Darrell West of the Brookings Institution.
The announcements added to optimism on Wall Street, sparked by the government’s decision to rescue the US’ second largest bank, Citigroup.
Obama said he would discuss steps toward a “sustainable and responsible budget scenario” in another news conference later today, in which he is expected to announce further members of his economic team.