WASHINGTON, November 22, 2008 (AFP) – The economic team of US president-elect Barack Obama came into view Friday as fears mounted on the global financial crisis and more mass job cuts loomed worldwide. Reports said Obama was set to appoint New York Federal Reserve chief Timothy Geithner as his Treasury secretary to take charge of fixing the ailing economy.
The news sparked a massive rally on Wall Street as it instilled confidence that the new administration would move quickly on the crisis, capping another tumultuous day for global markets that also saw heavy losses in Europe.
The Dow Jones Industrial Average vaulted 6.54 percent to close at 8,046.42, ending the week on a positive note.
“The pick of Geithner indicates that the new Obama administration is taking steps to calm markets by eliminating uncertainty in naming his future economic team prior to January 20,” said Andrew Busch at BMO Capital Markets.
US markets had been wobbling after two days of brutal selling that erased some 10 percent from the main indexes, but got a late boost from reports on the new economic team in Washington.
Obama was to personally unveil Geithner as the incoming Treasury boss at a news conferenc