Obama speaks on economy

In his first news conference as president-elect, Barack Obama said this afternoon that it is urgent to deal with the economy, but also made clear that there's "only one president and government at a time."

"We are facing the greatest economic challenge of our lifetime," he said in Chicago, with his economic advisers arrayed behind him on stage, standing in front of a series of American flags. "Immediately after I become president I will deal with this economic crisis head-on."

Obama said there's a need for a rescue plan for the middle class to create jobs and help struggling families. He also said the administration would accelerate aid to the auto industry to retool to make hybrid and other fuel-efficient cars.

The urgency of their task was made only more obvious with the latest depressing numbers. The Labor Department reported this morning that the unemployment rate jumped to 6.5 percent -- the highest in 14 years -- after the loss of another 240,000 jobs. That brings to 1.2 million the total jobs lost this year -- more than half of them since August.

Also, two of the big three US automakers reported huge losses in the third quarter -- Ford nearly $3 billion and GM $2.5 billion.

"This morning we woke up to more sobering news about the state of the economy," Obama said, noting that the country has had 10 straight months of job losses and now 10 million unemployed.

"I do not underestimate the enormity of the task that lies ahead," he added. "We have taken some major actions to date, and we will need further actions during this transition and subsequent months. Some of those choices will be difficult, but America is a strong and resilient country. I know that we will succeed if we put aside partisanship and work together as one nation. And that is what I intend to do."

Obama, Vice President-elect Joe Biden, and newly named White House chief of staff Rahm Emanuel huddled with the 17-member Transition Economic Advisory Board, which Obama's office said will "help guide the work" of Obama's transition team in "developing a strong set of policies to respond to the economic crisis."

Obama voted for the $700 billion financial rescue package, but has also talked about a rescue plan for the middle class, including targeted tax cuts, and about an economic stimulus package to create jobs. Democratic leaders in the House suggested this week that they might push for a $60 billion plan to extend unemployment benefits and food stamps and help cash-strapped states, then seek a broader package that could reach $200 billion once Obama takes office in January.