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Obama nominates Jacob Lew as Treasury Secretary

Updated: 2013-01-11 09:06
( Agencies)

Obama has vowed not to negotiate over the debt ceiling, which could be reached as early as mid-February.

"It's imperative that Mr. Lew outline the Administration's plans on tackling our unsustainable debt, what areas of federal spending should be cut, and what kind of reforms - from our tax code to our entitlement programs - are needed to get our fiscal house in order," Hatch said in a statement.

Obama nominates Jacob Lew as Treasury Secretary

President Barack Obama applauds White House chief of staff Jack Lew (L) after nominating him as his next treasury secretary to succeed Timothy Geithner, in the East Room of the White House in Washington, Jan 10, 2013. [Photo/Agencies]

'TIM PUT IT BACK TOGETHER'

At the White House announcement, Geithner earned sustained applause from the crowd of friends and family for his work helping the administration navigate the financial crisis that put banks at risk and cratered the housing and stock market early in Obama's first term.

"With the wreckage of our economy still smoldering and unstable, I asked Tim to help put it back together," Obama said.

There were at least two former White House budget directors in the audience for the Lew announcement, including Alice Rivlin, who headed the budget office in the early 1990s, later became a vice chair of the Federal Reserve, and who remains a fixture in fiscal policy debate.

Also attending was Franklin Raines, who led the budget office from 1996 to 1998. Raines was ousted as chief executive of mortgage finance giant Fannie Mae after an accounting scandal.

Geithner praised Lew as "a man of exceptional judgment, calm under pressure, with an extraordinary record of accomplishment and experience" on US economic policy.

Some analysts have questioned whether Lew has enough experience working on international financial issues and on banking regulations.    

But the White House has highlighted international experience Lew gained during his time at the State Department, and his "strong relationships in the business community," having worked as a managing director at Citigroup.

Thomas Donohue, the president of the US Chamber of Commerce said that all Treasury secretaries have to "compensate for the areas where they don't have experience" with strong deputies.

Donohue, whose business lobby has often butted heads with the Obama administration, told reporters he thought Lew was a "skilled operative" and a "tough dude."

"I think Jack Lew will do fine," Donohue said.


 

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