Economy crises: Obama wasting no time - Fox29 WFLX TV, West Palm Beach, FL-news & weather

Economy crises: Obama wasting no time

Posted by Rachel Leigh email

WASHINGTON (CNN) - President-elect Barack Obama holds his third news conference in three days Wednesday discussing the state of the economy and how he'll work to fix it.

Update, WED 10 AM: This comes after he makes a big decision: His choice for secretary of defense. So who will manage the War on Terror? President-elect Obama is re-enlisting a key member of the Bush Administration.

According to, Defense Secretary Robert Gates will stay on the job for at least another year. His appointment would fulfill the President-elect's pledge to include a Republican in his Cabinet.

Mr. Obama is expected to make the official announcement sometime after Thanksgiving along with other members of his national security team.

But the incoming president isn't done talking about the economy yet. Wednesday, he'll give his third press conference in as many days on the nation's biggest priority. "I think it's important given the uncertainty of the markets and given the very legitimate anxiety that the American people are feeling, that they know, that their new president has a plan and is going to enact a new plan swiftly and boldly."

That plan would add millions of jobs and give tax cuts to the middle class over the next couple years. But, many economists say, it could cost as much as $700 fueling an already soaring deficit. Mr. Obama has made it clear that economic recovery is the top concern.

Tuesday he also promised to slash wasteful spending. "In these challenging times, when we are facing both rising deficits and a sinking economy, budget reform is not an option. It's imperative."

Obama aides say the sudden flurry of public appearances is less about outshining the current president and more about fulfilling his pledge to Americans to hit the ground running.

Previously: President-elect Barack Obama holds his second news conference in two days.

The president elect is currently assembling his team and targeting the economy. "If we don't act swiftly and boldly, most experts now believe that we could lose millions of jobs next year."

With his economic dream team mostly in place, Mr. Obama will reveal more details to his economic blueprint Tuesday. He's also expected to name Peter Orszag as budget director.

"We'll have to scour our federal budget, line by line, and make meaningful cuts and sacrifices."

When the Obama Administration does take office, it will have the rest of the bailout money to work with, but that number seems to shrink every day.

Treasury Secretary Henry Paulson will unveil a plan Tuesday to boost the viability of auto loans, student loans and credit cards. This new initiative could run the country as much as $100 billion.

On Monday, Paulson stood by President Bush who defended the decision to jumpstart Citigroup with another $20 billion. "If need be, we're going to make these kind of decisions to safeguard our financial system in the future."

Analysts agree with the incoming president that the economy will get worse before it gets better, and, while both the current and future administrations admit fixing the economy is the top priority, how they plan on getting there is a different story.

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