Obama is news and when he makes choices for key posts it makes headlines. The post of Treasury Secretary is a crucial one especially with the doldrums the economy of the country is in. Geithner has age and charisma on his side. He is just 47 is the chief of the
New York Federal Reserve Bank. Although he has no experience on the Wall Street yet he has the confidence of the people.
This announcement will be made formally on Monday when Obama announces his Economic team. The effect of this proposed name could already be seen on the stock market. It began to climb steadily and ended with a 6% increase.
“As much as you want some fresh ideas in there, I think at this point in time, having some continuity in there is a good thing,” said Frederick Cannon, chief equity strategist at the research firm Keefe Bruyette & Woods. “The main thing the markets need is confidence.”
He makes a good candidate, as he is aware of the federal governments responses to the financial crisis. He was a part of the policy decisions from the sale of Bear Stearns last year to this year’s rescue of American International Group (AIG). The task before him is tough as the recession is likely to continue and tough measures will be needed to tackle with the situation. He will have to answer the previous chaotic decisions.
Brad Setser, a former Treasury official who worked briefly for Geithner both there and at the International Monetary Fund, said he has “a great deal of confidence that Tim can communicate effectively with a broad public.” Setser, from the Council on Foreign Relations, said Geithner is particularly skilled at thinking ahead, “anticipating where the world will be in three or six months’ time” and how policy can help.