November 7, 2008
Posted: November 7th, 2008 09:33 AM ET
Obama will have to confront the nation's ailing economy.
CHICAGO, Illinois (CNN) - The nation's sagging economy is expected to be in the spotlight Friday as President-elect Barack Obama and Vice President-elect Joe Biden hold their first news conference since the election. Obama named llinois Congressman Rahm Emanuel as his chief of staff on Thursday, but the transition office said no personnel announcements would be made at Friday's event. Obama will take questions from reporters, however. Before the news conference, Obama and Biden will meet with a 17-member council of economic advisers. Among the panelists are former Treasury Secretaries Lawrence Summers and Robert Rubin, former Fed Chairman Paul Volcker, billionaire businessman Warren Buffett, and leaders in business and Interest in the makeup of Obama's economic team is high as bad news continues to emerge daily. The Labor Department's monthly jobs report Friday morning showed that the shed 240,000 jobs in October. The unemployment rate climbed from 6.1 percent to 6.5 percent, the highest it's been since 1994. Also Friday, Ford Motor Co. reported a $3 billion operating loss in the latest quarter, and said it would reduce staff and capital spending to preserve its dwindling cash. Ford said it would cut white-collar compensation by eliminating merit pay, bonuses and retirement-account matching contributions.
"This is one of the first times that I can remember that the secretary of the treasury is going to be almost as important as the secretary of state," said CNN senior political analyst David Gergen, who served in the Reagan and Clinton administrations. A source with the Obama transition team told CNN that a plan to name David Axelrod a senior adviser to the incoming president is "in the works." Axelrod was the Obama campaign's chief strategist and was a top adviser to Obama during his run for the Senate in 2004. Observers believe Robert Gibbs, the communications director for Obama's presidential campaign, will become Obama's press secretary. Gibbs said that to say he has been offered the job is a report "ahead of itself." Obama was considering who will be on his team long before Tuesday's election. He could pick Republicans such as Sens. Chuck Hagel or Dick Lugar to come on board, analysts speculate. Defense Secretary Robert Gates' name also has been floated in media reports. Gates has served in Bush's Cabinet for almost two years. He worked for the Central Intelligence Agency for 27 years, serving as its director from 1991 through 1993. He also served as deputy national security adviser under President George H. W. Bush. "What Barack Obama has to do in the transition time is set the tone," said Gloria Borger, a senior political analyst for CNN. "If he reaches out to Republicans in the Cabinet - if he decided to keep Bob Gates at Defense - that's really, really important." Hagel, R-Nebraska, is a Vietnam War veteran and fierce critic of the Bush administration's handling of the Iraq war. Hagel did not run for re-election for his Senate seat this year. Lugar, R-Indiana, is minority leader of the Foreign Relations Committee and worked with Obama last year to expand a program aimed at destroying weapons of mass destruction in the former Soviet Union. The White House is holding an economic summit November 15. Obama could delay naming his economic team to avoid interfering with the G-20 summit. Names circulating for the treasury secretary position include Timothy Geithner, Lawrence Summers and Volcker. Geithner helped deal with Wall Street's financial meltdown earlier this year, overseeing the acquisition of Bear Stearns by JPMorgan Chase and the bailouts of AIG and Lehman Brothers. He was appointed president of the New York Federal Reserve in November 2003. Summers was appointed treasury secretary in July 1999 and served as the chief economist of the World Bank from 1991 through 1993. Before his career in government, he taught economics at Harvard. Volcker is a former chairman of the Federal Reserve, serving under Presidents Carter and Reagan. He also worked in the private sector as an investment banker and headed the investigation into the United Nations' oil-for-food program for Iraq. Obama said Thursday that Emanuel accepted his offer to be White House chief of staff. The Office of the Chief of Staff oversees and coordinates activities and communication among various departments of the administration. "I announce this appointment first because the chief of staff is central to the ability of a president and administration to accomplish an agenda. And no one I know is better at getting things done than Rahm Emanuel," Obama said in a written statement. Emanuel helped lead Democrats to majority control of the House in 2006. He was elected to the House in 2002 and is the fourth-highest-ranking member of the chamber's Democratic leadership. He also worked on President Clinton's first presidential campaign and served as a White House adviser to Clinton. Emanuel choked up as he said how glad he is his parents are alive to see him have the choice of becoming chief of staff for a "historic figure." He said he wants to do "everything I can to help deliver the change America needs." Also Thursday, Obama received and intelligence briefing and returned the calls of nine leaders of other countries, thanking them for having expressed congratulations on his election. The leaders were: the presidents of France, Mexico and South Korea; the prime ministers of Australia, Canada, Israel, Japan and the United Kingdom; and the chancellor of Germany. On Monday, Obama and President Bush are set to meet in the White House. "Michelle and I look forward to meeting with President Bush and the first lady on Monday to begin the process of a smooth, effective transition," Obama said in a statement. "I thank him for reaching out in the spirit of bipartisanship that will be required to meet the many challenges we face as a nation." – CNN's Candy Crowley, Suzanne Malveaux, John Helton, Kristi Keck and Filed under: Barack Obama
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