Monday, September 13, 2010

Obama taps Goolsbee as top White House economist

WASHINGTON: President Barack Obama on Friday, Sept 10 named Austan Goolsbee as the new head of the White House Council of Economic Advisers, promoting a longtime adviser from his inner policy circle.

"He's not just a brilliant economist, he's someone who has a deep appreciation of how the economy affects everyday people," Obama said at a news conference.

Goolsbee, who has been chief economist to Obama's Economic Recovery Advisory Board, chaired by former Federal Reserve chief Paul Volcker, has been closely involved in the policy process.

The appointment ensures continuity within Obama's economic team as the president tries to lift the faltering economy, and as speculation swirls around the future of other senior White House players, particularly the president's chief of staff, Rahm Emanuel.

The CEA is a key source of economic policy advice for the president and its chair plays a leading role in explaining the White House's economic message, an important job on Obama's behalf as anxiety over the outlook saps his approval ratings.

Goolsbee, 41, had been the strong favorite to replace outgoing chair Christina Romer after she announced her return to academia.

"She was part of the team that helped save this country from a depression," Obama said.

The appointment will not require Senate confirmation since Goolsbee already has been confirmed as a member of the CEA.

Already a familiar face on financial news television, Goolsbee is an effective communicator and respected economist and will likely be a persuasive advocate for Obama's approach to the economy as voters weigh the choice between Democrats and Republicans in November.

He has been a particularly visible presence this week explaining the president's latest proposals to boost growth and hiring.

POLICY PITCHMAN

Obama is trying to ease unemployment stuck near 10 percent amid slowing growth, with voter unease over the economy threatening punishment for his Democrats in congressional midterm elections on Nov. 2.

A longtime adviser to Obama who is on leave from his job as University of Chicago economics professor and holds a PhD from the Massachusetts Institute of Technology, Goolsbee has earned Obama's confidence and is well-liked by the president's inner circle, which could make him influential.

"I have complete confidence he's going to do an outstanding job," Obama said.

Nearly two years into Obama's presidential term, speculation about other changes in the White House team is mounting, particularly concerning Emanuel following the surprise decision of Chicago Mayor Richard Daley to not seek reelection. Emanuel has made no secret of his desire to be Chicago's mayor one day.

In addition to naming the next head of the CEA, Obama is also expected to announce soon his pick to lead the newly created consumer financial protection bureau. The leading candidate for this slot is consumer advocate Elizabeth Warren. - Reuters

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