Business | Economy
Obama to outline cuts in US budget
President-elect Barack Obama was to outline steps to trim the federal budget late on Tuesday as he simultaneously plans a costly stimulus package to jolt the ailing US economy.
- Reuters
- Published: 23:15 November 25, 2008
Chicago: President-elect Barack Obama was to outline steps to trim the federal budget late on Tuesday as he simultaneously plans a costly stimulus package to jolt the ailing US economy.
Though he does not take office until January 20, Obama's team of economic advisers is already working out the details of a two-year package to save or create 2.5 million jobs that could cost several hundred million dollars.
That spending, which is expected to push the budget deficit higher, will be offset at least partially by spending cuts elsewhere, Obama said.
Obama is also expected to unveil further members of his economic team, following on Monday's announcements of New York Federal Reserve Bank president Timothy Geithner as his Treasury Secretary and Lawrence Summers, a former Treasury secretary under President Bill Clinton, as director of his National Economic Council.
World stock markets mostly rose on Tuesday, with Asia leading the way on gains of five per cent in Tokyo, as investors cheer-ed government action to tackle the global economic crisis. European indices overcame early losses to stand higher heading into mid-day trade. London advanced 0.75 per cent and Paris 0.44 per cent, but Frankfurt shed 0.47 per cent.
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