(Updates with more quotes, details on economic team)
WASHINGTON (AFP)--U.S. President-elect Barack Obama Saturday announced plans to create 2.5 million new jobs as he forged ahead in his bid to shore up the flagging economy ahead of his January inauguration.
The job stimulus would take place over the next two years, Obama said in his weekly radio address, as he prepared to reveal the members of his economic team early next week, according to media reports.
Expected to lead Obama's team as Treasury secretary is New York central banker Timothy Geithner, 47, who would be tasked with overseeing the $700 billion bailout package as the world's largest economy is staring at recession.
With Congress on recess as of Friday, Obama outlined in broad strokes his plan for a broad stimulus package to lift Americans out of economic peril fueled by sweeping housing foreclosures and job losses.
Obama, who has vowed to make the economy his priority when he takes office from President George W. Bush on Jan. 20, said the effort should produce 2.5 million new jobs by January of 2011.
"We'll be working out the details in the weeks ahead, but it will be a two-year, nationwide effort to jump-start job creation in America and lay the foundation for a strong and growing economy," Obama said.
His announcement came two days after government data showed that new jobless claims had surged to a 16-year high, in a new sign that the world's largest economy appeared to be sliding into a deep recession.
This year, the U.S. economy has shed 1.2 million jobs, and the president-elect warned millions more could be lost next year without urgent action.
The Federal Reserve has warned the jobless rate could climb to 7.6% in 2009 as the economy struggles with a sharp downturn and a global financial crisis.
Obama said he intended to put people back to work rebuilding roads and bridges, modernizing schools, building wind farms, solar panels and fuel-efficient cars.
He also plans to develop alternative energy technologies that he says can free the U.S. from its dependence on foreign oil and keep the U.S. economy competitive in the years ahead.
"These aren't just steps to pull ourselves out of this immediate crisis," he said. "These are the long-term investments in our economic future that have been ignored for far too long."
Obama said his economic recovery plan represented "an early downpayment" on the type of reform his administration will bring to Washington.
U.S. media reports said Obama was ready to name Geithner, well known to Wall Street from his role as New York Federal Reserve chief and was a career official at the Treasury Department from 1988 to 2001, as Treasury secretary.
Geithner, who would succeed Republican Henry Paulson, has served under three administrations and risen to undersecretary for international affairs.
The reports of Geithner's selection appeared to have reassured investors, resulting in the Dow Jones industrial stock index jumping nearly 500 points on Friday.
Former Treasury Secretary Larry Summers and ex-Federal Reserve Chairman Paul Volcker are likely to play key roles as economic advisers to the new president.
It wasn't immediately clear, though, if Summers and Volker would participate in drafting the recovery plan.
Major media outlets, including CNN and the Wall Street Journal, anticipated that Obama would make an announcement detailing the members of his economic team on Monday.
The president-elect predicted in his address that ensuring passage of his plan by Congress wouldn't be easy and he would need the support of both Democrats and Republicans.
"There are no quick or easy fixes to this crisis, which has been many years in the making, and it's likely to get worse before it gets better," he said.
"But what is not negotiable is the need for immediate action," he said. "Right now, there are millions of mothers and fathers who are lying awake at night wondering if next week's paycheck will cover next month's bills."
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(END) Dow Jones Newswires
November 22, 2008 12:16 ET (17:16 GMT)

Publié le 22 novembre 2008 Copyright © 2008 Dowjones