November 21, 2008
Likely Pick of Geithner for Treasury Sends Stocks Soaring
President-elect Barack Obama is moving markets.
At least that what it seems after word that Obama is seriously considering naming Timothy Geithner, president of the New York Federal Reserve, as treasury secretary, leaked out.
The Dow Jones Industrial Average ended 494.13 points higher, up 6.5%, at 8046.42 on reports of Geithner’s new role.
If nominated and confirmed by the Senate, Geithner, 47, would be tasked with tackling the current economic slowdown and a major credit crunch that are threatening to put the U.S. in the deepest recession in more than a generation. As president of the New York federal reserve, Geithner has played a key role in the government’s response to the financial crisis.
Obama has repeatedly referred to the economic crisis as the top priority for his new administration. On the campaign trail, Obama’s calm response to dealing with the economic roller coaster was a stark contrast to Sen. John McCain, who couldn’t seem to formulate a cohesive economic strategy.
Geithner held posts in the Treasury Department under three administrations and five secretaries before moving to the New York Fed in 2003. He also held positions at the International Monetary Fund and was employed at the private firm of former Secretary of State Henry Kissinger.
If the rumor mill is really correct, Sen. Hillary Clinton has accepted the post of secretary of state and Eric Holder will be the next attorney general. New Mexico Gov. Bill Richardson has also emerged as a likely choice as commerce secretary.
The Obama-Biden transition team has yet to make any formal announcements about the treasury, commerce or state deparment posts.
Deborah Creighton SKinner is the editorial director at BlackEnterprise.com