With the Obama administration being aware of the current focus being on jobs, Timothy Geithner’s potential departure can mean that the President will have to put together a new economic team in the face of re-elections next year.
Sources who know Geithner well say that he is planning to quit as soon as Obama manages to reach an agreement with Congress in regards to raising the national debt limit. However, the reason for his departure is due to wanting to be with his son in New York as he finishes his last year of school.
In a speech at the Chicago Global Initiative in Chicago, he was pretty clear about his passion for his work and his intention to carry on working for the current administration in the role of the US Treasury Secretary.
Following his departure after the raise of the national debt ceiling, Austan Goolsbee is also scheduled to leave in early August back to the University of Chicago leaving both these posts vacant. However, they’re not the only ones to go as three top economic advisors such as Christina Romer, Lawrence Summers and Peter Orszag left the Obama administration last year.
Yet Geithner can’t be blamed for wanting to take a break from government office as he had to deal with the aftermath of the collapse of the Wall Street firms, both as the President of the Federal Reserve Bank of New York as well as the Treasury Secretary.
Now, the pressure continues unabated as negotiations continue to increase the national debt ceiling over the current amount of $ 14.3 trillion by August 2 or else the US will risk defaulting on its obligations.
Experts say that with Geithner leaving, uncertainty could rise in the market and this will slow down the economic recovery. Alternatively, the Republicans consider his replacement to be a CEO with relevant business experience but whether or not that is a wise move remains to be seen.