Treasury Pick

Word that President-elect Barack Obama has finally selected a Treasury Secretary, New York Federal Reserve President Tim Geithner, sent the stock market climbing on Friday. The Wall Street Journal editors’ reaction? It’s about time. They wrote:

We take the market’s reaction as a strong sign of the price that was being paid in uncertainty over this choice and the direction of the incoming Administration’s economic policy. There could hardly be a clearer signal that addressing the immediate panic in the credit markets and its impact on the real economy is priority No. 1 for the new President and that all involved want to get the Obama show on the road.

The delay of nearly three weeks after the election in announcing his economic team has confused and befuddled observers, and contributed unneeded instability in the markets at the worse possible time. The reason for this peculiar roll out of cabinet positions (HSS before Treasury?) is unknown.