Obama: Long-term joblessness a concern

Labor may feel crunch 'for some time,' despite 'some return to normalcy' in financial markets.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

301 Moved Permanently

301 Moved Permanently


nginx
Video
The Fixers
7 people are in charge of rescuing the economy. Here's who they are and how they plan to do it.
What do you think about the Obama administration's new automotive fuel standards?
  • They're good
  • They're not strong enough
  • They'll hurt the economy

WASHINGTON (Reuters) -- President Barack Obama, speaking to a high-level advisory panel of economic experts, said Wednesday that U.S. financial markets had improved recently but he was concerned the country would face higher unemployment for some time.

"We're pleased that we've seen some progress, that there is some return to normalcy in certain aspects of the financial markets," Obama said at a White House meeting of his 16-member Economic Recovery Advisory Board headed by former Federal Reserve chief Paul Volcker.

"We expect that there is going to be some stabilizing in the economy ... will begin to turn again," he added. "The concern that we have is that even in a stabilized situation there is the prospect of higher unemployment for some time to come."

Obama told the group he remained committed to looking beyond the immediate crisis and wanted to put the economy on a sounder footing by promoting clean energy and "green jobs" to help spur economic recovery in the longer term.

The president said the House Energy and Commerce Committee was "making more progress than we would have ever expected" on climate change legislation.

He led the panel, which includes GE (GE, Fortune 500) chief executive Jeffrey Immelt and Caterpillar (CAT, Fortune 500) CEO Jim Owens, in a discussion of green energy issues, including proposals for reducing greenhouse gases emissions with a market-based cap and trade system.

Panel member Richard Trumka, secretary-treasurer of the AFL-CIO labor federation, said there was great potential for the United States to lead in job-creating clean energy exports but voiced concern that free trade agreements the administration was considering would "disadvantage" American business in global competition.

First quarterly meeting

Obama announced the creation of the Economic Recovery Advisory Board in February, but its work had been entirely behind-the-scenes until Wednesday's first quarterly meeting, which was carried live by Internet feed on the White House Web site.

Volcker's role in advising Obama is of keen interest to many on Wall Street, where the 81-year-old former central banker remains a towering figure known for breaking the back of runaway inflation during the 1980s.

Volcker has continued to weigh in on public policy matters since leaving the Fed in 1987. He was a key adviser to Obama during the campaign and speaks frequently with White House officials on financial-regulatory and other issues.

But he has vented some frustration to associates about his level of access within the White House economic power center.

Obama's inner circle on economic policy consists of National Economic Council director Lawrence Summers, a former Treasury secretary; current Treasury Secretary Timothy Geithner; Christina Romer, chairwoman of the Council of Economic Advisers; and Austan Goolsbee, a longtime Obama adviser who sits on the Council of Economic Advisers and is also chief of staff on the Volcker panel.

The economic recovery panel, which includes Democrats and Republicans and people from business, academia, public policy and labor union backgrounds, is intended to give Obama some outside perspective on economic issues. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
These 10 food trends could dominate 2015 So long, kale. Here's what's expected to shake up the food industry next year. More
Beyond Russia: Geopolitical hot spots in 2015 Investors beware: These 5 global crises are likely to rattle the stock market and world economy. More
These 20 antique guns could fetch big bucks Morphy Auctions in Pennsylvania is putting nearly 1,000 old guns on the block. Here are just a few. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Copyright 2009 Reuters All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.