November 26th, 2008
11:05 AM ET
9 years ago

Obama names former Fed chairman to head recovery board

[cnn-photo-caption image= caption="Obama held his third press conference in three days Wednesday."]CHICAGO, Illinois (CNN) - President-elect Barack Obama Wednesday named former Federal Reserve chairman Paul Volcker, 81, to lead a new economic recovery board.

"Paul has been by my side throughout this campaign, providing a deep understanding of financial markets, extensive experience managing economic crises, and keen insight into the global nature of this particular crisis," Obama told reporters, calling Volcker "one of the one of the world's foremost economic policy experts."

Obama said a key purpose of the board would be to provide a perspective from outside the walls of the Washington "echo chamber," which he said "can sometimes keep out fresh voices and new ways of thinking."

The announcement came during the president-elect's third news conference in three days on the economic situation.

Austan Goolsbee, a University of Chicago economist who has been one of Obama's top economic advisors, will serve as Staff Director and Chief Economist of the board.

Obama said he would name other members of the board "in the coming weeks." He is due to take office on January 20, 2009.

The board will brief Obama, offering independent, nonpartisan information, analysis and advice to the president as he formulates and implements his plans for economic recovery, Obama's transition office said.

It will be established initially for a two-year term, after which Obama will determine whether to continue its existence based on its continued necessity.

Full story

Filed under: Obama transition
soundoff (186 Responses)
  1. FreeNLovIt

    Every four year, we vote for change. We asked for change and that change is Obama. Obama is change. A different leader does bring in different perspective on how they want to run the country. Obama is about to perform a open-heart surgery on the economy. I trust his STEADY judgement and well-thought out process on how to perform the surgery. Next to him, are experienced candidates, he'll be absorbing ideas from, but it will be his STEADY hands, that will cut open the mess and clean up that heart-attack. I trust his hands over McCain. Patience, judgement and vision is his crown.

    November 26, 2008 01:47 pm at 1:47 pm |
  2. Jeff from Atlanta

    Ken in Dallas,
    Talk about ignorance in economics, you should look in the mirror.
    Carter was an absolute disaster. Clinton catipulted Carters Fannie Mae debacle into an outright banking disaster. Sure it helped him look good but only because he could put off the bubble burst until he was out of office.

    Before you throw stones at Sweetie, take a hard look in the mirror. You arrogant "college" naive rant is about as ignorant as it gets.

    November 26, 2008 01:48 pm at 1:48 pm |
  3. EW

    Levar Patterson,

    Being smart is far different than being wise. Native Americans used to seek the advice and blessing of the elders, because they are wise. You can become smart relatively quickly, wisdom comes with age.

    November 26, 2008 01:50 pm at 1:50 pm |
  4. tedious898

    Max....I know this is hard to understand; but here goes....

    If Volker was Treasury Sec. at a time in inflation was unusually high then that means previously there was a problem with government spending. In other words, he was only fixing the problem and didn't necessarily cause it. Fed policy is always reactivate there Einstein.

    November 26, 2008 01:51 pm at 1:51 pm |
  5. Lisa fromAZ

    I love Paul Volcker and the whole economic transition is shaping up to serious people that realize the CHANGE we need is simply "ACTION" and "SMART GOVT" with a leader that accepts responsibility....Barack Obama. I love Dr. Susan Rice and I cannot wait to see what role she plays in the president-elect's vision. People, January 20th is just around the bend!

    November 26, 2008 01:54 pm at 1:54 pm |
  6. Mike

    I was, and am, an Obama supporter. For all of you cynics who say we're not getting the change we asked for, I disagree. Sure Obama is picking experienced people. But his approach to doing things is novel. He started work the day after the election without a break, he reaached out to McCain, Clinton's appointment as SOS is immiment, he asked the Dems to let the Lieberman issue go, he's created an economic advisory board...all those things are not business as usual. And that, my friends, is change, not cynical politics.

    November 26, 2008 01:56 pm at 1:56 pm |
  7. You've got to be kidding me

    Jeff from Atlanta, yeaaa right blame everything on Clinton. Republicans deregulate all they can, let the selfish rich scumbags steel all they can and leave with a golden parachute, and then they blame it on the guy that came before, after being in charge for 8 years???

    That's just pathetic...

    November 26, 2008 01:58 pm at 1:58 pm |
  8. NY Republican

    Ken in Dallas – PE Obama's balanced budget promise was only yesterday. Have you forgotten already?

    November 26, 2008 02:02 pm at 2:02 pm |
  9. Walt, Belton,TX

    There won't be any big "change" in an Obama regime. Color it a half-black, half-white Carter remake After all, Carter was the one that started this entire financial fiasco. And, what's worse is that the same SOB's that caused it and abetted it are the ones Obama has put back into power to "fix" it. The only thing they're going to fix is our wallets–they're going to be much thinner.

    "CHANGE" is what is going to be left in each of our bank accounts!

    November 26, 2008 02:10 pm at 2:10 pm |
  10. John

    For all you "meatheads" defending the PE – Obama...did you ever stop to think that this "mess" was created for the purpose of electing this impostor. Do the math vetting....mostly jewish appointees...more of the same. This is the beginning of the end.. and oh by the way, Al Franken will win. He has to.

    November 26, 2008 02:15 pm at 2:15 pm |
  11. FreeNLovIt

    Paul Volkner looks like a disciplined NO NONSENSE individual, willing to make unpopular decisions. We need people that are willing to wear PANTS. We need REAL men/women to lead us.

    November 26, 2008 02:16 pm at 2:16 pm |
  12. Marc

    Jeff from Atlanta. Please realize that I am not discussing the validity of your statement: the Carter Years were really bad and bubble was created during Clinton Years (the Fannie Mae thing is argueable though since both sides claims the other for the whole disaster).
    The point is that Sweetie claimed that Volker was the responsible for the mess ('Hell' in her words) during Carter Years. Any quick Google or Wikipedia search would prove her wrong and if more accurate and deeper based data was necessary, all that was needed was a quick check in any 'more serious' website about the History of the American Economy.
    It's not about throwing stones at someone or having 'arrogant college naive rant', just liking a lot to have the fact as they are or were at the time, and not as a unbased hate-monger like Sweetie (check her previous post to confirm my affirmation) would want just to make her point more valid.

    November 26, 2008 02:20 pm at 2:20 pm |
  13. NY Republican

    Thanks Ken "Those who voted for him twice need to get their DNA tested to see what species they really belong to." I'm so glad you are not one of those Republican "haters" that you folks are all up against in these debates.

    November 26, 2008 02:20 pm at 2:20 pm |
  14. Change - Yeah Left

    The Repubs may have pushed for deregulation, but the Dems sure came a long and capitalized on every crooked criminal scheme they could make happen.

    I fully and totally blame the economic problems on the push FROM THE DEMS to prevent banks form being allowed to put reasonable standards in place – standards that required people be able to afford their homes. However, with those DEMOCRATIC STANDARDS, causing someone to provide proof of being able to own a huse was discrimination.

    Look at the joy of the DEMOCRATIC policies in action – crook and criminals and cheats and liars running the show. Oh boy oh boy!

    CNN, dare you?

    November 26, 2008 02:22 pm at 2:22 pm |
  15. Ex-Republican for Obama

    EW November 26th, 2008 1:10 pm ET

    Facts are facts. The economy gerw more under President Bush than it did under Clinton.
    You can complete your thoughs with: Other things that grew while Bush was president: our debt, number of wars we are fighting, casualties of war, attacks in our homeland. And the economy has also reached it's worse place since the great depression under your incompetent Bush.

    False growth leads to dire times. Economic growth derived from foreign credit is never a good idea. You can thank 'the worse president ever", GWB for getting us here!

    November 26, 2008 02:30 pm at 2:30 pm |
  16. Chris - Denver

    I know Paul Volcker is very smart and capable, but he looks a little too much like Dick Cheney for my comfort. Could we at least get him to wear a wig or something?

    November 26, 2008 02:40 pm at 2:40 pm |
  17. Ghost

    Seriously, you folk are delusional. It was de-regulation that allowed the banking industry to offer loans to unqualified folk. And if you looked at those housing policies, it also asked that banks invest in the communities. The industry decided to put out those loans. Not t mention that it sounds alot like these banks also over extended themselves as well.

    November 26, 2008 02:42 pm at 2:42 pm |
  18. VP

    Ed Henry
    Please stop acting like a fool. What we now have is an intelligent, articulate President-Elect. Sharpen your wits before you step in with your stupid questions next time.

    November 26, 2008 02:44 pm at 2:44 pm |
  19. joey from san diego

    I love obama, since he has been nominated, gas has gone from 4 dollars a gallon, to 2 dollars a gallon.

    November 26, 2008 02:44 pm at 2:44 pm |

    Maybe Obama is keeping all of the crooked people close so they can't get anything done without him. If this isn't the case, then we know how he won the presidency and why . Not to take anything from Obama, because I am extremely proud of him from the historical standpoint, but if he is just a yes man we are all going to homeless, without jobs, that were shipped oversees, and we will become a third world country.

    November 26, 2008 02:46 pm at 2:46 pm |
  21. BJ

    Paul Volcker = double digit mortgage interest rates.

    November 26, 2008 02:51 pm at 2:51 pm |
  22. Charles I Am

    I love all these Republican talking points being slung around as fact. I love it because I don't have to listen to Hannity, Limbaugh, Coulter and the rest to know their latest mantra. I just listen to all those that are brainwashed by them and keep up to date. I look forward to the next set of lies and misleading comments coming from the lunatic Right and guess what? As long as their minions keep posting, I will not have to listen to their obnoxious dribble.

    Free Americans voted for !!!!!!!THAT ONE!!!!!!!!!

    November 26, 2008 02:53 pm at 2:53 pm |
  23. Armando

    Wow what a shocker, president bailout picked another fed reserve guy. What happened to the change and the hope? Why doesn't he pick someone who actually understands economics. If borrowing and spending got us into this problem, it's not going to get us out. You people need to get real if you think the government will get us out of this mess. They are the ones that created the problem. It's like calling the arson that set your house on fire to come help you put it out.

    "The definition of insanity is doing the same thing and expecting a different result"- Albert Einstein

    November 26, 2008 02:56 pm at 2:56 pm |
  24. Gaylon Barrow


    November 26, 2008 03:00 pm at 3:00 pm |
  25. No Hillary = No Obama

    All these "former" this and "former" that. Obama is telling the nation he needs a foundation. Before long it will be the Clinton's running the country.

    November 26, 2008 03:05 pm at 3:05 pm |
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