Aug 3, 2011 No Comments ›› Angelia
The debt-limit crisis is over. Will Treasury Secretary Timothy Geithner call it quits, too?
Speculation is rife in Washington that Geithner, who has outlasted all of President Obama’s other original economic advisers, will resign now that the nation’s borrowing capacity has been extended to 2013 and a 10-year, $2.1 trillion deficit-reduction agreement enacted.
Geithner’s consideration of a return to New York, where he formerly headed the Federal Reserve Bank of New York, was first reported by Bloomberg News in late June. As recently as Tuesday, he told ABC’s Good Morning America, “I haven’t made that decision yet.”
The Treasury secretary has been notably frustrated with the ways of Washington and the tactics of Republicans. Writing in today’s Washington Post, Geithner referred to the debt-limit and deficit-reduction agreement as “a terrible process, but a good result.”
“The agreement removes the threat of default and lowers the prospect of using the debt limit as an instrument of coercion,” he wrote. “It should not be possible for a small minority to threaten catastrophe if the rest of the government decides not to embrace an extreme agenda of austerity and the dismantling of programs for the elderly and the less fortunate.”
If he leaves, who will Obama name to replace him? Lawrence Summers, his former top economic adviser in the White House, decamped last year to return to Harvard. Summers was preceded out the door by the other leaders of Obama’s economic team, budget director Peter Orszag and Council of Economic Advisers chair Christina Romer. Even Romer’s replacement, Austan Goolsbee, is leaving to return to academia in Chicago.
One name being floated is that of Jon Corzine, the former New Jersey governor and senator and Goldman Sachs CEO, who heads up MF Global. As a former member of the Senate, Corzine probably would enjoy a swift confirmation process.