Obama To Appoint Goolsbee As CEA Chair

President Barack Obama has selected one of his longtime economic advisers, Austan Goolsbee, to replace Christina Romer as Chair of the Council of Economic Advisers, according to a White House official.

Romer recently stepped down amid a withering economy with plans to return to California to be with her son as he starts high school this fall. She is expected to take a teaching position at the University of California at Berkely. 

Her replacement, Austan Goolsbee, a University of Chicago professor of economics, has been serving as staff director of the President’s Economic Recovery Advisory Board, a new Obama administration advisory committee, since Obama took office. Goolsbee also served as Obama’s senior economic adviser during the 2008 presidential campaign but slid under the radar after he reportedly told Canadian officials Obama’s stance on trade was ‘political positioning’. He disputed the allegations and later resurfaced in a series of debates with Sen. John McCain’s (R-Ariz.) economic adviser, Douglas Holtz-Eakin.

Additionally, because the 41-year-old Goolsbee was confirmed by the Senate as a member of the Council of Economic Advisers, he does not need a second confirmation to ascend as chairman. 

President Obama is expected to make his appointment public this morning at a news conference from the White House.

Romer Leaving White House Economic Team

Top White House economic adviser Christina Romer will be leaving the administration early next month.

In a statement released Thursday night, President Obama praised the chair of the Council of Economic Advisers for her role in the White House’s efforts to stimulate the American economy.

“[Christina] Romer has provided extraordinary service to me and our country during a time of economic crisis and recovery,” Obama said. “The challenges we faced demanded more of Christy than any of her predecessors, and I greatly valued and appreciated her skill, commitment and wise counsel.”

Romer’s exit represents the second shake-up of the administration’s economic team, following Office of Management and Budget Director Peter Orszag’s departure late last month.

Romer, whose last day is September 3rd, is slated to return to the University of California Berkley, where is she an economics professor. There has also been speculation that she will step in as President of the Federal Reserve Bank of San Francisco.

While a replacement has not yet been named, Austan Goolsbee, the Council of Economic Advisers’ staff director, is considered an early contender for Romer’s position.

Theme Of President's Economic Report: Rescue, Rebalance, and Rebuild

By Benny Martinez - University of New Mexico/Talk Radio News Service

On Thursday, Council of Economic Advisers Chair Christina Romer presented President Barack Obama's 2010 Economic Report.

The report, scheduled to be delivered to Congress today, detailed the many obstacles the country must overcome in order to avoid another recessionary period.

Romer said the report's theme is one that directly reflects the status of this country; Rescue, Rebalance and Rebuild. She also said that, over the past year, the President has been looking to implement this theme with the jobs and health reform bills.

"[The President] has sought to rescue the economy from immediate crisis, rebalance the economy and begin the process of rebuilding the economy on a stronger foundation of quality, affordable health care, better education and job training, clean energy and innovation," Romer said.

In the report, the President estimates a hike in jobs created per month to 95,000, a number many of his critics believe is far fetched. Romer said she believes the uptick to be consistent with other forecasts.

Romer also said that initiatives like the jobs and wages tax credit, the energy retrofit program and small business lending will be particularly effective in materializing the 95,000 estimate.

"It's our best estimate going forward," Romer said. "I think what the President is going to do is to put in place the best that we can, working with Congress, and then see if we can get better performance. That of course, would be what all of us are hoping for."

White House Briefing

With Robert Gibbs

President Obama will meet with his Holiness the Dalai Lama on February 18th in the Map Room of the White House. White House Press Secretary Robert Gibbs said that the President is looking forward to “an engaging and constructive dialogue. “
At the White House Briefing, Gibbs was also joined today by Dr. Christina Romer, Chair of the Council of Economic Advisors. She presented the Economic Report, number 64 in the order, that will be sent to Congress.
Romer said that each economic report talks about three things; first it brings up the economic challenges that we face as a country. Secondly, it talks about what policies were put in to place and how they work, and finally it lays out the President’s agenda going forward.
She also talked about the passed year and the coming challenges. Romer felt the importance of this particular report, not because of herself but because of the times we are facing.
Dr. Romer also said that this is the first time that the report is printed in color and also available electronic form. “It’s prettier than ever before”, Romer said.
When asked if the estimates are more conservative in order to not be burned politically, Dr. Romer said that, “every time we try to do the best we can. The truth is that we don’t have a crystal ball. Every year we try to do an honest, reasonable, conservative forecast ... ”

Iran

Gibbs said that they continue to monitor events in Iran as they happen. The President was very clear in his speech in Oslo, that we stand by the universal rights of Iranians to express themselves freely and to do so without intimidation and violence”.
When asked about a statement from the head of Iran’s Atomic Energy Agency who cautioned President Obama about what he called taking the wrong steps, and telling the United States that consequences are beyond imagination; Gibbs said Iran has made a series statements that are based more on politics and not on physics. “We do not believe that they have the capability to enrich to the degree to which they now say that the are enriching. “
He also stated that, “our allies are more united in this than they have ever been,” to take actions and consequences based on the statements and actions of the Iranians.
Gibbs was also asked about the relationship with China and if they are on board with the UN sanctions, and he said that, “ the Chinese will continue to play a constructively role. They worked with us very constructive with the UN resolution with North Korea. It is not in their interest to have an arms race in the Middle East, Gibbs continued.

China

Gibbs was asked why the White House was preceding with meeting with the Dalai Lama considering how much China is clearly against it. “ We think we have a mature enough relationship with the Chinese that we can agree on issues that are of mutual interest, but we also have a mature enough relationship that we know that two countries on this planet are not always going to agree on everything, and we’ll have those disagreements, “ Gibbs said.

Snow in Washington DC Area

When asked if the President is pleased with the response to the storm, considering that the federal government is closed for a 4th day in a row, Gibbs said that what we have seen here is extraordinary. “If there was snowfall that exceeded what we had this winter, it happened before we kept statistics on snowfall. It has been an overwhelming weather event.“ People are working to clear enough so that the federal government can open again.

Sen. Bond and John Brennan

Gibbs was asked about Senator Kit Bond who was accusing the White House of using John Brennan for political purposes. Gibbs responded by telling reporters that John Brennan has worked in counterterrorism for more than 25 years. He worked at the CIA and hired by former President George W. Bush and was asked to stay on. “ I don’t have a slightest idea what political party John Brennan is a member of. I have never had a political conversation with John. I know this; John is there each and every day working in his office to try to do everything he can to keep the American people safe. And I would suggest, whether it's to Senator Bond or others on Capitol Hill, that these are decisions best left to people that have an understanding of counterterrorism, experience in counterterrorism and law enforcement, rather than to politicians on Capitol Hill.”

Top White House Economic Adviser Says Unemployment Likely To Stay Elevated

Travis Martinez - University of New Mexico/ Talk Radio News Service

White House Council of Economic Advisers Chair Christina Romer testified before a joint economic committee Thursday that although the nation's economy is moving into “recovery phase,” it is likely that the overall unemployment rate will remain painfully weak through 2010.

“As we [U.S. economy] enter the fourth quarter with the unemployment nearing 10 percent, it is likely to remain severely elevated,” said Romer.

Committee Chairwoman Carolyn Maloney (D-N.Y.) expressed deep concerns for the future of jobs and the labor market. During her opening statement, Maloney said that she can see signs of recovery, but it's contributing little to no help for the labor market.

“I am deeply concerned about the state of our labor market, as I have been since the start of this recession. GDP growth is of little comfort to the millions who have lost their jobs,” she said.

Romer reminded the committee that analysts have predicted that the Recovery Act will have its greatest impact on economic growth in the second and third quarters of this year. By mid-2010, she explained, fiscal stimulus will likely be contributing little to growth. However, Romer said she believes that the country has survived the low point of the recession, adding that there is concise evidence that the policies implemented by the Obama administration are working.

“If GDP growth for the third quarter is indeed positive, as anticipated, this would be strong evidence that the economic recovery is underway,” said Romer.