Barack Obama Will Choose Treasury Secretary Soon
Cabinet Financial Post Could Belong to Summers, Volcker or Geithner
Nov 6, 2008
The Right Person For the Job
Many are waiting will nail-biting impatience as President-elect Barack Obama prepares to announce his appointment to the White House post of Secretary of the Treasury. The man or woman who succeeds current Secretary Henry Paulson will be faced with what is almost universally considered one of the greatest financial crises ever to challenge both the United States and much of the world.
Far from being a typical lame duck government official, Secretary Paulson will be obliged to prepare the country for a difficult transition during the coming weeks. Given the unique seriousness of the current U.S. economic situation, there is valid and widespread talk that Obama will speak early about his choice of a Treasury Secretary.
Hit the Ground Running
American economist and former Federal Reserve Vice Chairman Alan Binder recently told NPR that the next Treasury Secretary would have to "hit the ground running." Early selection for the post, in Binder's view, is both necessary and inevitable. Elaborating on this point, Binder said, "In this case, I'm pretty sure he's going to have to hit the ground running before he's Secretary of the Treasury."
An unnamed economic advisor to Obama was recently quoted as saying that one to two weeks following the former Illinois Senator's electoral win is a reasonable time frame for an announcement to the Treasury post.
Good With Money
As chief economist to the World Bank from 1991-1993 and then Secretary of the Treasury from 1999-2001, Larry Summers will almost certainly emerge as a front runner in the race to secure the key Treasury job. There is no official word yet from Summers' camp about whether or not the former Secretary is positioning himself for an encore role in the Treasury, however.
At 81, Paul Volcker would constitute an interesting choice for Secretary of the Treasury for obvious reasons. Nevertheless, he brings an impressive set of credentials to the potential job. In 1975, Volcker became President of the Federal Reserve Bank of New York, later strengthening his resume with an appointment as chairman of the Board of Governors of the Federal Reserve System under former President Jimmy Carter, a position in which Volcker served from 1979 to 1987.
The Time Is At Hand
Timothy Geithner is another strong candidate for the Treasury Secretary post. Geithner served on both the Council on Foreign Relations and the International Monetary Fund. His experience is further buttressed by his current position as President of the Federal Reserve Bank of New York.
Whoever President-elect Obama eventually chooses to name the next Treasury of the Secretary, the consensus seems to be that he must name him or her soon. As markets struggle to hold their centers during the Presidential transition, the economy matters, perhaps now more than ever, to the American people.
