Barack Obama signaled his tough approach towards restoring the economy to health by assembling a highly-educated, experienced and diverse team to advise him. (Article date: January 18,2009)
Geithner was head of the New York Federal Reserve Bank, and assured a smooth transition in handling the credit crisis that threw the global economy into recession. Geithner has played a key role in the Federal Reserve's intervention in the crisis since August 2007. He has also served as Undersecretary of the Treasury for International Affairs.
Volcker blamed the economic crisis on poor regulation of the financial sector, and advocates tougher restrictions. As Board President, he brought in leaders from business and academia to provide an independent perspective on how to handle the crisis. Volcker was Chair of the Federal Reserve when the economy was experiencing 10% annual inflation rates. Volcker raised rates to 20% and kept them high until he saw that inflation was in check. Volcker, who is in his 80s, was active in Obama's campaign.
Although not officially a member of Obama's team, Bernanke will continue to play an important role in resolving the economic crisis. Bernanke has proven his expertise in his creative solutions towards providing liquidity throughout the crisis. He spearheaded new roles for the Fed, such as the bailout of Bear Stearns and AIG.
Summers has a lot of hands-on expertise in the domestic economy, through his experience as Treasury Secretary (1999-2001) and the global economy, through his tenure as Chief Economist of the World Bank(1991-1993). However, as Treasury Secretary, he oversaw the repeal of the Glass-Steagall act, and advocated deregulation of derivative trading. Many experts blame the repeal of this act and deregulation for the banking credit crisis and resultant recession. Summers returned to Harvard as a professor.
8. Former-OMB Director Peter Orszag
Orszag was the director of the Congressional Budget Office, is a professional economist known for such page-turners as “Saving Social Security”, a 300-page tome boasting 37 pages of footnotes and eight appendices. Whether Mr Orszag will be tough enough with the red pencil, however, is something that his track-record does not tell us. The Office of Management and Budget director oversees $3 trillion in federal spending and plays a pivotal role in setting economic priorities.
9. former-CEA Chair Christine Romer
Romer was a professor of economics at the University of California at Berkeley who specialized in tax policy. The Council of Economic Advisors guides the the President in creating economic policy. It also prepares an annual report on the economy.