President-elect Barack Obama has selected Timothy Geithner as Treasury secretary, charging the respected head of the New York Federal Reserve with pulling the United States out of an economic nosedive, NBC news reported on Friday. Geithner, 47, had been seen as one of two main candidates for the job along with former Clinton administration Treasury chief Lawrence Summers. US stocks soared on the news, pushing major indices up more than 6 percent. The Dow Jones industrial average closed above 8,000, an important psychological trading level. “A fantastic choice to help lead the financial markets out of the wilderness,” said Chris Rupkey, senior economist at The Bank of Tokyo-Mitsubishi in New York, of Geithner. “A crisis manager par excellence who will hit the ground running as he has been on the case since the global funding crisis began way back in July 2007.” A senior Democrat told Reuters in Washington that Obama wanted Geithner for the Treasury job, but had yet to make a offer. He did confirm that Summers was no longer under consideration. “Summers is off the list,” the source said. The New York Times, meanwhile, reported that New York Sen. Hillary Clinton had accepted Obama's offer to become his secretary of state, bringing his one-time main Democratic rival into a pivotal role in his new administration. “She's ready,” the Times quoted one of two Clinton associates who confirmed the deal as saying. Clinton senior adviser Philippe Reines told Reuters: “We're still in discussions, which are very much on track. Any reports beyond that are premature.” Officials at Obama's transition office in Chicago had no immediate comment on any of the reports. If confirmed by the US Senate as Treasury secretary, Geithner would be at the helm of efforts to guide the country out of the financial crisis, which some analysts predict could lead to the worst economic downturn since the Great Depression. NBC also reported that New Mexico Gov. Bill Richardson – who was one of a crowded pack of Democratic presidential early this year – could receive Obama's nod to become commerce secretary. Richardson's elevation to the cabinet would give the Obama administration its first high-profile Hispanic member as its main liaison to the business community. Richardson was a UN ambassador and energy secretary under former president Bill Clinton. Obama, who beat Republican John McCain in the Nov. 4 election, takes over from George W. Bush on Jan. 20. His early moves got the thumbs up from the Senate's Republican leader, Mitch McConnell, who said he believed the Obama team was preparing to “govern in the middle and tackle big things.” “I think the new administration is off to a good start,” he told reporters on Capitol Hill. Democrats increased their majority in the Senate and US House of Representatives in the Nov. 4 vote. Obama has criticized the Republican's administration sharply for harming the United States' stature in the international community. Set to become the first black US president, he will inherit a deeply unpopular war in Iraq and another war in Afghanistan, where violence has soared, and will seek to rebuild relationships with allies, particularly in Europe. Retired Marine Gen. James Jones has emerged as a leading contender for White House national security adviser, according to Democratic sources.
