Obama faces crucial economic challenges

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Source: CCTV.com | 01-21-2009 09:59

During his campaign for the White House, Barack Obama called himself a candidate of hope and change. He now faces the daunting challenge of restoring the health of a faltering economy.

US President Barack Obama waves to the crowd after being sworn in as the 44th US president by Supreme Court Chief Justice John Roberts in front of the Capitol in Washington. Obama gave notice Tuesdsay that an era of economic "greed and irresponsibility" is over as he pledged  swift and bold action to kickstart the world's biggest economy.(AFP/Paul J. Richards)

And with jobless claims expected to rise even higher in the months ahead, much of Obama's efforts in his first weeks in office will focus on passing what could be a trillion dollar economic stimulus plan.

Crucial challenges ahead, and the new US president knows it won't be easy.

Barack Obama, US President, said, "We start 2009 in the midst of a crisis unlike any we have seen in our lifetime."

Since winning the election, Obama has had to confront worsening economic data almost every day. US unemployment continues to rise - it recently jumped to 7.2 percent, the highest in 16 years.

Major industries like auto manufacturers -- once the economic backbone of the US -- are struggling to survive.

Thomas Mann, Senior Fellow, Brookings Institute, said, "We simply haven't seen anything like this with both the financial meltdown and the continuing problems within the credit markets and the recession itself."

The US economy stumbled badly in 2008.

The catastrophe started with a highly predictable housing and credit crisis, which in turn prompted businesses to begin slashing payrolls, forcing a surge in unemployment figures.