'Greatest economic challenge'
Obama sets sights on economy - vows to confront global financial crisis.
NEW YORK (CNNMoney.com) -- President-elect Barack Obama said Friday that the United States is "facing the greatest economic challenge of our lifetime" and vowed to act swiftly to address the global financial crisis.
"Immediately after I become president, I will confront this economic crisis head-on by taking all necessary steps to ease the credit crisis, help hardworking families, and restore growth and prosperity," Obama told reporters in Chicago at his first press conference as president-elect.
Obama was surrounded by his transition economic advisory board, with whom he had met earlier in the day to discuss how to combat the effects of the credit crisis that has spread from Wall Street to Main Street to countries around the globe.
"I do not underestimate the enormity of the task that lies ahead," he said. "Some of the choices we make will be difficult. It is not going to be quick or easy to dig ourselves out of the hole we're in."
Obama cited worse-than-expected unemployment numbers released Friday showing that U.S. employers had shed nearly 1.2 million jobs this year.
He said economic conditions are such that "more action is undoubtedly going to be needed." If the lame-duck Congress doesn't pass an economic stimulus package before takes office, Obama said, it will be the first thing he does as president.
Among his preferred options for juicing the economy: extending unemployment benefits, helping state and local governments facing a budget squeeze and offering a tax credit to businesses for every new hire they make in the United States.
Obama also said he would review the way the Bush administration has implemented the Troubled Asset Relief Program, which is the centerpiece of the $700 billion financial rescue package passed in October to help stabilize the financial system and credit markets.
"It is critical that the Treasury work closely with the FDIC, [Department of Housing and Urban Development] and other government agencies to use the substantial authority they already have to help families avoid foreclosure and stay in their homes," Obama said.
The president-elect also noted the dismal reports coming out of the auto industry, specifically those from Ford (F, Fortune 500) and General Motors (GM, Fortune 500). Executives at the Big Three automakers met with leading lawmakers on Thursday to ask for financial assistance.
Calling the auto industry the "backbone of American manufacturing," Obama said he has asked his transition economic advisory board to work on additional policy options to help the industry and determine whether doing so can occur under current law or whether new legislation would be needed.
In addition, asked whether high-income earners can expect to see higher taxes in 2009, Obama seemed to indicate there is a chance he might postpone implementing his pledge to raise the top two income tax rates on families making more than $250,000 if economic conditions were flagging.
"I think the plan we've put forward is the right one. But obviously ... we're going to continue to ... see what's taking place in the economy as a whole. [T]he goal of my plan is to provide tax relief to families that are struggling but also to boost the capacity of the economy to grow from the bottom up."
Friday's meeting and press conference were held less than 72 hours after Obama was elected to serve at the 44th U.S. president. The quick pace of his transition efforts reflects the difficult economic and market conditions.
The current administration has been keeping Obama and his transition team apprised of developments and decisions that will help ensure "the next president and his team can hit the ground running," President Bush said Thursday.
Members of Obama's board include former Treasury Secretary Larry Summers and former Federal Reserve Chairman Paul Volcker, both of whom are said to be on Obama's short list for his Treasury Secretary.
The board also includes investor Warren Buffett, former Labor Secretary Robert Reich, former Securities and Exchange Commission Chairman William Donaldson, Xerox chairman Anne Mulcahy, TIAA-CREF president and CEO Roger Ferguson, and Michigan Gov. Jennifer Granholm, among others.
- CNN Wires contributed to this report 
