11/26/2008 9:21 AM ET
TOP MARKET NEWS
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Obama Names Paul Volcker To Head Economic Recovery Board
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(RTTNews) - President-elect Barack Obama is expected to name former Federal Reserve Chairman Paul Volcker as the head of a new economic recovery board Wednesday, several media outlets are reporting. Volcker, who served as Fed Chairman through 1979 - 1987, received praise for the unpopular decision to ratchet up the Federal Funds rate to combat inflation.
Under Volcker, inflation peaked at 13.5 percent in 1981. Volcker hiked up the federal funds rate, sending the economy into a recession with unemployment rates at their highest since the Great Depression. However, by the end of his efforts, inflation was successfully lowered to 3.2 percent by 1983.
In 2008 the problem is not inflation, but concerns about a deep recession and deflation in the midst of financial and housing crises. The economic board is designed to assist Obama in helping the struggling economy recovery. Obama will detail the board in his press conference Wednesday, scheduled for 10:45 am ET.
In addition, media reports are hinting that Obama is set to retain Robert Gates as defense secretary for at least the first year and pick retired General James Jones to be his national security adviser.
Gates, a former CIA director and a moderate Republican with long-standing ties to the Bush family, has served as the outgoing President George Bush's defense chief for two years. His appointment, when confirmed, would fulfill an Obama pledge to include a Republican in his Cabinet.
An anonymous Democratic official said Jones, the former marine commandant and commander of U.S. and NATO forces in Europe, was Obama's pick to head the National Security Council.
U.S. media reports also suggested that retired Admiral Dennis Blair, the former commander of the U.S. Pacific Command and a veteran of the NSC, CIA and Joint Chiefs of Staff, would be appointed the director of national intelligence.
However, there was no official announcement from the Obama Transition Team regarding these appointments -- including those of Senator Hillary Clinton as secretary of state, and Susan Rice as U.S. ambassador to the United Nations-- which will formally be announced after the Thanksgiving holiday weekend.
by RTT Staff Writer
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Source: http://www.rttnews.com/Content/Policy.aspx?Id=786545
