Mr. Lew would break the mold of current Treasury chiefs given that he's much better regarded for staying a loyal lieutenant and price range wonk than a financial-market professional with broad small business contacts.
Mr. Lew's assortment to do well Timothy Geithner, which may be announced as early as Thursday, signals that Mr. Obama is ready to aggressively pursue his economic-policy aims in his 2nd phrase. Lots of Republicans oppose the White House's insistence on raising extra tax income as element of any potential deficit-reduction deal, but Mr. Lew's vocal assistance in the technique suggests the administration, even though ready to negotiate, will not give ground with no battle.
The option also exhibits the president's tendency is usually to draw from a relatively tight group of advisers to perform crucial roles. Mr. Lew served Mr. Obama through the starting of his administration, 1st within the State Division and later on from the White Home and is now aspect of his inner circle. Just this week, Mr. Obama pulled a further White Household staffer, John Brennan, to develop into director on the Central Intelligence Agency, and appears most likely to change Mr. Lew as White Property chief of employees with an additional insider.
The tendency has created an Obama group that is not marked by inner feuding and divisions as considerably as some previous administrations are already, but additionally has produced criticism the group across the president is also insular and closed to outdoors tips.
Mr. Lew's nomination would come as element of the broad Cabinet-level reshuffle. Moreover for the CIA choose, he has picked nominees to lead the Defense Division and also the State Division. Labor Secretary Hilda Solis explained Wednesday she planned to leave, as well as the White Property nonetheless must nominate long lasting leaders for that Workplace of Management and Spending budget and also the Commerce Division.
Mr. Obama's intention to nominate Mr. Lew was reported Wednesday by Bloomberg News and confirmed by a Democratic official. Mr. Lew, who declined to comment, is much less well-known on Wall Street than quite a few of his predecessors regardless of currently being a brand new York native and obtaining worked at Citigroup C -0.99% .
Mr. Lew, 57 many years old, is actually a veteran of quite a few Washington price range battles, stretching back to his function like a senior congressional aide from the 1980s. He would probably draw on that practical experience in the course of the looming fights in excess of the financial debt ceiling, government investing amounts along with a achievable overhaul on the tax code.
One of the most pressing could be the government's have to have to increase its $16.394 trillion borrowing restrict. The Treasury Division presently is employing emergency measures to avoid the nation from defaulting, but individuals measures are anticipated to run out amongst mid-February and early March.
Mr. Lew, that is often known as Jack, has worked for or on behalf of a lot of the Democratic Party's icons of liberalism to the superior aspect of 5 decades. As being a 12-year-old, he canvassed for Democratic presidential contender Eugene McCarthy and reduce his teeth doing work for Bella Abzug (D., N.Y.), Joseph Moakley (D., Mass.) and Household Speaker Thomas "Tip" O'Neill (D., Mass.).
In recent times, he has served as chief operating officer at New York University and two divisions of Citigroup Inc., ahead of turning into deputy secretary of state in 2009. He has become White Household chief of workers considering the fact that 2012, following a publish as head in the White Household Workplace of Management and Spending budget.
Lots of Republicans have viewed Mr. Lew as capable but overly rigid immediately after contending with him for the duration of spending budget battles stretching back on the 1980s. He clashed with GOP aides all through the 2011 battle more than the financial debt ceiling, with some feeling he was not prepared to make deep concessions to reduce a deal.
In 2011, as political leaders have been creating the investing reductions that will commence this year if a more substantial deficit-reduction deal was not reached, some Republicans wished to reduce Medicaid, the health-care plan to the poor. Mr. Lew bluntly interrupted to say Medicaid was off the table, prompting a GOP aide to hang up the cell phone, as outlined by someone acquainted using the exchange. Quite a few months earlier, through a debate above government funding, the usually-even-tempered Mr. Lew stormed out in excess of a dispute with Republicans about what numbers the two sides need to use as their "base line" for negotiations.
"He's a challenging man to negotiate with,'' explained former Sen. Judd Gregg, a fresh Hampshire Republican who handled Mr. Lew extensively on price range issues though in Congress. "He has his positions and he does not give considerably ground, even though he's truly a good particular person.''
Senior GOP aides explained they anticipated Mr. Lew would win confirmation barring sudden developments, but that Republicans could prolong the confirmation approach to emphasis on inquiries about Obama fiscal policies.
1 probable place of inquiry will be his time at Citigroup, from 2006 until finally 2009. With its broad array of divisions and aggressive bets on exotic monetary solutions, Citi nearly became the biggest casualty in the money crisis, requiring numerous government bailouts.
Mr. Lew served as chief operating officer at two divisions in the corporation, Citi Worldwide Wealth Management and Citi Substitute Investments. The latter division was finally split into pieces when it sustained heavy losses right after Mr. Lew's exit. Individuals who worked with him mentioned Mr. Lew played a largely operational function and was not intimately involved with the choices about how the divisions invested and managed cash. He was brought towards the company by former Clinton Treasury Secretary Bob Rubin, who in the time had a senior publish there.
Mr. Lew's supporters have described him as an unparalleled fiscal specialist and note that he was portion from the spending budget agreements all through the Clinton administration that led to a surplus just after negotiations using the GOP. Lots of cited his considerable do the job on budgets and taxes, specifically provided the prominence of individuals difficulties in Washington now.
"He has straight-A experience?aafter all he's been OMB director twice, he's been White Residence chief of personnel," mentioned Roger Altman, founder and executive chairman of Evercore Partners who worked with Mr. Lew from the Clinton administration. "I'm not positive the way you might be superior ready provided what the challenges are above the foreseeable potential."
Mr. Geithner joined the Obama administration in January 2009. He aided style and design the administration's strategy to your 2008 fiscal crisis, worked to win passage of your Dodd-Frank monetary overhaul law, and was a important player during the battles in excess of the financial debt ceiling in 2011 along with the fiscal cliff in 2012. He spent a considerable period of time focused on foreign challenges, together with Iran sanctions, the European fiscal crisis and worries in excess of the valuation of China's currency.
If confirmed, Mr. Lew's move could set off a reshuffle of leading White Home posts. The primary contenders to change him as chief of personnel are Ron Klain, former chief of workers to Vice President Joe Biden, and Denis McDonough, a deputy nationwide protection adviser. Treasury Deputy Secretary Neal Wolin also is anticipated to leave quickly, however the White Residence has requested that he enable with all the transition.
?aPatrick O'Connor, David Enrich, Sarah Portlock, Carol E. Lee and Suzanne Kapner contributed to this short article.
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