With the disaster averted, it will be easier for the Treasury secretary to walk away, and many expect him to do just that
With the deal to raise the debt limit successfully reaching the finish line on Tuesday, speculation reemerged that Treasury Secretary Tim Geithner would soon announce his departure.
Treasury confirmed in June that Geithner was considering resigning once the debt issue was resolved, and he said in a Tuesday appearance on "Good Morning America" that "I haven't made that decision yet."
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Although it is unclear when Geithner plans to leave, many financial industry representatives and analysts said his exit has been expected once the debt-limit fight was resolved. Such a vacancy of a core cabinet position would come at a trying time for the economy and the financial system but would also provide fresh opportunities for President Obama to reinvent his image on the economic front before the 2012 elections. Given the fragile fiscal and political dynamics, analysts said Obama would need to nominate a successor with seasoned experience who could inspire market confidence and easily attract enough Republican support to clear the Senate, where a number of Obama nominees have been blocked by the GOP.
"With Geithner everyone is expecting something is going to happen now that we have a budget, if he's going to jump it would be soon," said Lawrence Kaplan a lawyer with Paul Hastings. "It is going to have to be someone with really impeccable credentials to keep a firm hand on the tiller, at the same time you want someone who understands what is going on. There is no time for on-the-job training, which could dictate an insider type person, someone who understands the macro-economic policies. But it has to be someone who is respected on both sides of the aisle because we cannot afford a fight over this."