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“WSJ UPDATE: Geithner Under Pressure From White House To Stay-Sources

By Damian Paletta and Carol E. Lee

Of THE WALL STREET JOURNAL

WASHINGTON (Dow Jones)--Treasury Secretary Timothy Geithner remains undecided about whether to remain in his post, but he's under increased pressure from White House officials to stay, people familiar with the matter said Thursday.

Mr. Geithner, who joined the Obama administration at its inception in 2009 and has played a central role in virtually every economic decision, told White House officials several weeks ago he was considering stepping down after the debt ceiling debate concluded so that he could join his family in New York.

But White House officials have asked Mr. Geithner to consider remaining at Treasury, given all the economic challenges facing the country. Personal overtures from Mr. Obama could be hard for Mr. Geithner to reject, though he hasn't reached a decision about what to do, people familiar with the matter said.

He is expected to make a decision soon about his future, people familiar with the matter said.

"As Secretary Geithner has said he hasn't decided when he'll leave, and he has said he will be here for the foreseeable future...that's what he tells us and he's obviously a key member of the economic team," White House spokesman Jay Carney said Thursday.

The New York Times on Thursday reported that Mr. Geithner is expected to stay under White House pressure.

(This story and related background material will be available on The Wall Street Journal website, WSJ.com.)

Mr. Geithner's potential departure would cause a number of headaches for the White House. He has been one of the few constant figures in administration's economic policy decisions, ranging from the economic stimulus law, the overhaul of Wall Street rules, and most recently the effort to raise the debt ceiling. And replacing him could be a political minefield, as the post requires Senate confirmation and would likely put the White House's economic policy decisions under a congressional microscope.

Mr. Geithner has at times become frustrated by the partisan battles over fiscal policy, and he seemed particularly alarmed that the debt ceiling fight pushed the country to the verge of a credit default.

The Treasury Department is likely to be play a key role in most of the administration's major initiatives until the 2012 president election, including a growing focus on jobs and efforts to spur more economic growth. Treasury Department officials are also discussing whether to roll out a proposal to overhaul the tax code, which could potentially be included as part of a new special congressional committee tasked at trimming $1.5 trillion from future deficits.”