On Sunday the Treasury Department released a statement which says that Geithner had told the president about his decision to remain in the administration.
Timothy Geithner (born August 18, 1961) is an American economist, central banker, and civil servant. He is the 75th and current United States Secretary of the Treasury, serving under President Barack Obama. He was previously the president of the Federal Reserve Bank of New York.
Geithner’s position includes a large role in directing the Federal Government’s spending on the late-2000s financial crisis, including allocation of $350 billion of funds from the Troubled Asset Relief Program enacted during the previous administration.
At the end of his first year in office, he continued to deal with multiple high visibility issues, including administration efforts to restructure the regulation of the nation’s financial system, attempts to spur recovery of both the mortgage market and the automobile industry, demands for protectionism, President Obama’s tax changes, and negotiations with foreign governments on approaches to worldwide financial issues
Mr Geithner had indicated he might leave after a debt-ceiling increase was approved, partly because his family was returning to New York, where his son is planning to attend his final year of high school this autumn.
People close to Geithner also said he was considering leaving after the debt limit was raised in August. But some administration officials had told that both Mr Obama and White House chief of staff William Daley had urged him not to leave now.
Geithner has told that he enjoyed a close working relationship with Obama. Mr Geithner informed the president Friday morning that he had decided to remain in the Cabinet.
“The president asked Secretary Geithner to stay on at Treasury and welcomes his decision,” White House spokeman Jay Carney said in a statement. Timothy Geithner is the only remaining top official on Obama’s original economics team.
The high-stakes drama over the debt ceiling increase, which brought the world’s biggest economy to the brink of default, has given way to a new set of concerns after ratings agency Standard & Poor’s downgraded US debt late on Friday.
Mr Geithner informed president Obama about his decision to stay on the job as Treasure secretary before credit rating agency Standard & Poor’s informed Treasury officials Friday afternoon that they planned to downgrade the government’s credit rating from AAA to AA-plus.
Timothy Geithner and other finance ministers from the world’s largest economies have been discussing what actions need to be taken to stabilize markets following renewed worries about Europe’s debt problems.
The White House also feared a protracted confirmation battle in the Senate over the successor to Mr Geithner would have led to more anguish for the administration.
A series of Obama’s economic advisors have departed including Lawrence Summers, the first head of the president’s National Economic Council, and two of the president’s chief economic advisers, first Christina Romer and then Austan Goolsbee, who left this past week.
Obama has also had to replace his first budget director, Peter Orszag. Mr Geithner, the last of Obama’s original economic team to remain in office, is also valued by the White House for his experience at navigating economic storms.
When he took office in January 2009, the economy was in deep recession after the US housing market collapse and ensuing credit crunch. In his previous job as president of the New York Federal Reserve, he played a central role in the government’s response to those crises. [via Huffpost and The Telegraph]