FACTBOX: Obama comments on economic issues

President-elect Barack Obama is flanked by Council of Economic Advisors Director-designate Christina Romer, National Economic Council Director-designate Lawrence Summers (R) as he announces the members of his economic policy team during a news conference in Chicago, November 24, 2008.

(Reuters) - President-elect Barack Obama on Monday named members of his economic team who will be charged with leading efforts to fight the mounting U.S. financial crisis.

In a news conference, Obama also addressed several economic issues that will confront his administration when he takes office on January 20. Here are the highlights of the news conference:

NAMES GEITHNER, SUMMERS, ROMER TO TOP POSITIONS

* In his first official Cabinet nomination, Obama named New York Federal Reserve Bank President Timothy Geithner to be the next Treasury secretary. Obama said Geithner offered "an unparalleled understanding of our current economic crisis, in all of its depth, complexity and urgency."

* He named former Treasury Secretary Lawrence Summers to head the White House National Economic Council. Obama called Summers "one of the great economic minds of our time" and said he would "rely heavily on his advice as we navigate the uncharted waters of this economic crisis."

* Christina Romer, a macroeconomist and economic historian at the University of California, Berkeley, who studied America's recovery from the Great Depression, was named as chair of Obama's Council of Economic Advisers.

NEED FOR ECONOMIC RECOVERY PLAN, STIMULUS

* Obama said he would not discuss how big a stimulus package might be needed, saying only that it had to be "significant enough that it really gives a jolt to the economy" and adding that "it's going to be costly."

* Obama said he spoke with President George W. Bush and Federal Reserve Chairman Ben Bernanke about doing "whatever is required to keep the financial system working and capital flowing."

* "It is not important just for the banks, it is important for our entire economy, it is important for small businesses, large business ... My commitment is to do what is required so that our financial system works. President Bush has indicated he has the same approach, the same outlook. What is important for the American people to understand is that we are united in making the financial system works."

* Obama said the current financial turmoil would require "extraordinary policy responses." He said his administration would honor public commitments made by the Bush administration to address the crisis.

* Obama said he hoped the new Congress would begin work on an "aggressive economic recovery plan" when they convene in early January.

* "We need a big stimulus package that will jolt the economy back into shape and that is focused on the 2.5 million jobs that I intend to create during the first part of my administration."

* "I want to see it enacted right away ... it is going to be of a size and scope that is necessary to get this economy back on track."

* Obama repeated warnings that recovery will not be easy. "There are no shortcuts or quick fixes to this crisis, which has been many years in the making -- and the economy is likely to get worse before it gets better. Full recovery will not happen immediately."

TAXES

* Obama did not directly answer a question if he would let the Bush tax cuts expire at the end of 2010 or if he would use legislation to repeal them before that.

* He said only that he wants to "restore balance" to the tax code. "The Bush tax cuts were disproportionately targeted toward the very wealthiest Americans."

* "It is important, if we're going to help pay for some of these expenditures that are absolutely necessary to get our economy back on track, that those who are in a position to pay a little bit more do so. Whether that's done through repeal or whether that's done because the Bush tax cuts are not renewed is something that my economic team will be providing me a recommendation on."

AUTO INDUSTRY

* Asked what he thought about the struggling U.S. auto industry, and recent pleas by Detroit automakers for a bigger government rescue package, Obama said: "We can't allow the auto industry to simply vanish. we've got to make sure that ... the workers and suppliers and businesses that rely on the auto industry stay in business."

* But he said the government could not just "write a blank check to the auto industry."

* He said he was surprised that the automakers did not have "a better thought out proposal" when they testified before Congress last week.

* "We should help the auto industry but what we should expect is that any additional money that we put into the auto industry, any help that we provide is designed to ensure a long term sustainable auto industry and not just kicking the can down the road.

* "The auto industry needs to present us with some clarity in terms of the dollar figures that they're talking about, but more importantly, are they describing for us an auto industry that is focused on retooling, understands that we're entering into a new energy economy, that is going to be competitive globally?"

(Reporting by Deborah Charles; editing by David Wiessler)