As Paul Volcker Leaves White House, Jeffrey Immelt Arrives

The former Federal Reserve president leaves his role as leader of the influential President’s Economic Recovery Advisory Board (PERAB), leaving the position to Jeffrey Immelt, the iconic boss of General Electric, to take over at the reins of the council in order to boost economic growth.

Volcker’s departure was expected and it brings to an end the White House’s personnel rotation plan after the loss at midterm elections this past November. Paul Volcker leaves what is an independent economic council, very influential with the U.S. President. Last Friday, Jan. 21, the White House simultaneously announced the arrival of Jeffrey Immelt to the helm of a new Economic Council which focuses on employment and competitiveness, and whose role is to “promote economic growth” by investment activity in the United States.

Fifty-five-year-old Immelt, CEO of conglomerate General Electric since 2000, is a main player in the U.S. business world. He has already been a member of PERAB under Paul Volcker for two years.

The departure of the last Council was announced by Barack Obama personally on Thursday night. Paul Volcker, former chairman of the Federal Reserve, 83, served two years as head of the council. “Since my campaign for president, I have relied on Paul Volcker’s counsel as we worked to recover from the worst economic crisis since the Great Depression,” said Obama in a statement. “Paul Volcker is not only one of the wisest economic minds in our country, he’s an individual who has for decades fought for policies that help American families and strengthen our economy,” Obama added. “From his bold vision around how to reform our financial system to his thoughtful insight on how to make our economy work for working families again, Paul brought his brilliance and vast experience to bear on a host of difficult challenges,” stressed the president, who also stated that he would “rely on his counsel for years to come.” Barack Obama created PERAB in 2009, when he was faced with massive economic challenges.

Paul Volcker is best known for his role at the head of the Federal Reserve, which overcame the stagflation of the 1970s in the U.S. by limiting the growth of the money supply and rising interest rates. More recently, during the financial crisis, he had been extremely critical when it came to the banks.

His departure comes as one of a series of influential advisers: shortly before him were Rahm Emanuel (chief of staff to the president) and Larry Summers (director of the National Economic Council); just after him came Robert Gibbs (Obama spokesman). These advisers have been reshuffled following the defeat of the Democratic presidential majority at the November midterms.