Obama calls for swift action on economy

President-elect Obama holds first press conference
President-elect Barack Obama speaks to the press Friday in Chicago. Obama vowed that "immediately on taking office I am going to confront the economic crisis head-on."

(AP) - President-elect Obama said Friday that the country is facing the greatest economic challenge in a lifetime and "we're going to have to act swiftly to resolve it."

In his first news conference since winning the presidency Tuesday, Obama said Congress must pass an economic stimulus measure either before or just after he takes office in January. He also said unemployment benefits need to be extended.

But he deferred to President Bush and his economic team on major decisions in the coming weeks.

Meeting with advisors
President-elect Barack Obama and Vice President-elect Joe Biden meet with the Transition Economic Advisory Board November 7, 2008 in Chicago, Illinois. Obama met with economic advisors as the U.S. unemployment rate rose to its highest level since 1994.

"The United States has only one government and one president at a time," Obama said.

Obama spoke after he and Vice President-elect Joe Biden met privately with economic experts to discuss ways to stabilize the troubled economy.

Biden, the advisers and Obama's new chief of staff, Rahm Emanuel, stood behind him as he spoke for 20 minutes from a podium that said "the Office of the President Elect" at a hotel in his home town.

Obama calmly fielded questions about the economy, Iran and his family's search for a pet dog. No matter the question, he replied with caution - and one flash of self-deprecating humor when discussing the dog.

His family is looking for a dog that will not trigger his daughter Malia's allergies. Ideally, he said it would come from an animal rescue shelter, but "obviously, a lot of shelter dogs are mutts like me."

The economic crisis, however, dominated the news conference, and Obama said, "I do not underestimate the enormity of the task that lies ahead."

Barack and Michelle Obama
President-elect Barack Obama and his wife Michelle leave the University of Chicago Lab School after a parent-teacher conference November 7, 2008 in Chicago, Illinois. The Obama's daughters Malia and Sasha attend the school.

More evidence of a recession came Friday when the government reported that the unemployment rate had jumped from 6.1 percent in September to 6.5 percent in October. Despite dour third-quarter reports from Ford and General Motors, stocks rose some after two days of heavy losses.

His transition to power and early days in office, if not the entire first year of his presidency, almost certainly will be devoted to finding ways to revive the dismal economy.

"Immediately after I become president I will confront this economic crisis head-on by taking all necessary steps to ease the credit crisis, help hardworking families, and restore growth and prosperity," Obama said.

He said his focus would be on producing jobs and mentioned actions to help the auto industry and small business and aid for state and local governments so they aren't forced to lay off workers or raise taxes.

"Some of the choices that we're going to make are going to be difficult," Obama said. "It is not going to be quick. It's not going to be easy for us to dig ourselves out of the whole that we are in."

But he said he was confident the country could do it.

Obama also left the door open to the possibility economic conditions might prompt him to change his tax plan that would give a break to most families but raise taxes on those making more than $250,000 annually.

"I think that the plan that we've put forward is the right one, but, obviously, over the next several weeks and months, we're going to be continuing to take a look at the data and see what's taking place in the economy as a whole," Obama said.

Obama told reporters that he's confident that "a new president can have an enormous impact."

On other topics, Obama said:

-He will review a letter from Iran's leader and respond appropriately. It's not something "that we should simply do in a knee-jerk fashion," he said. Obama said he wants to be careful to send the signal to the world that "I'm not the president and I won't be until Jan. 20."

-He will move with all deliberate haste to fill Cabinet posts. He said when he chose Emanuel as chief of staff: "We thought it through" and he wants to do the same with other top appointees to avoid making mistakes.

Obama said he appreciated the cooperation Bush has offered in smoothing his transition to the White House and the Republican's "commitment that his economic policy team keep us informed." He expressed gratitude to Bush for inviting him and his wife, Michelle, to the White House on Monday.

In the spirit of bipartisanship, Obama said he expected to have a substantive conversation with Bush at that time and that "I am not going to anticipate problems."

As he prepares to join an exclusive club of presidents, Obama said: "I've spoken to all of them that are living" and has reread some of President Lincoln's writings.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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