Obama chooses Lew to head Treasury
By From Wire Reports
Published: Wednesday, Jan. 9, 2013, 10:00 p.m.
WASHINGTON — President Obama recently said he would love to hire a top executive into his administration. But for the job of Treasury secretary, he didn't pick a corporate executive, a famous economist or a former politician — he tapped his trusted adviser, White House Chief of Staff Jacob Lew, an expert on the nation's ongoing budget wars.
Obama chose Lew to take over from Treasury Secretary Timothy Geithner, the president's longest-serving economic adviser, according to two people familiar with the pick. The selection of Lew signals that Obama's second term will not initially focus on big new ideas to create jobs or expand government investment in the economy.
Rather, it will involve a sustained conflict with congressional Republicans over the nation's finances. The government is likely to face a deadline to raise the $16.4 trillion federal debt ceiling no later than March 1 — as well as a series of deep and automatic spending cuts known as sequestration set to begin about the same time.
These battles will once again pit Democrats' economic vision against that of Republicans. Democrats say they want to raise taxes on the wealthy to shrink the deficit but reduce government spending sparingly so as to preserve funding for domestic priorities such as education. Republicans oppose new taxes, saying they would crimp economic growth, and favor deep cuts to spending.
The composition of Obama's second term Cabinet became clearer Wednesday, with Labor Secretary Hilda Solis resigning and three other members of the president's team deciding to stay on amid concerns about diversity in Obama's inner circle.
Solis, a former California congresswoman and one of the highest-ranking Hispanics in the Cabinet, said she was departing after leading the department during the economic storms of the first term. She was the nation's first Hispanic labor secretary.
A White House official said three Cabinet members — Attorney General Eric Holder, Health and Human Services Secretary Kathleen Sebelius and Veterans Affairs Secretary Eric Shinseki — would stay on as the second term begins. It would ensure diversity among the president's leadership team — Holder is black, Sebelius is a woman and Shinseki is of Japanese-American descent.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- SpaceX supply ship makes Easter cargo delivery to space station
- Grandmother left vengeful note in boys’ slayings, then committed suicide, police say
- Iranian envoy officially blocked by law
- Judge strikes down Minnesota’s anti-coal law as unconstitutional
- Feds to require 2-person crews on freight trains hauling crude oil
- Dangers of Heartbleed bug grow every day
- Colorado deaths stoke marijuana worries
- Medicaid paid $12M for Illinois dead, audit finds