Obama seeks to chart new course on economy

US president Barack Obama, acting swiftly on his first full day in office, plunged into Middle East peace diplomacy and summoned…

US president Barack Obama, acting swiftly on his first full day in office, plunged into Middle East peace diplomacy and summoned his economic and national security teams today to confront the financial crisis and the unpopular Iraq war.

Fresh from the pageantry of his historic inauguration as the first black US president, Mr Obama was ready to get down to work on the daunting challenges he inherited from George W. Bush, with policies he has promised will break sharply with the past.

Mr Obama, who has vowed bold action to deal with the worst economic crisis in decades and to hammer out an exit strategy from the unpopular war in Iraq, planned separate meetings in the late afternoon with economic advisers as well as with his national security team.

Before plunging into his White House duties in earnest, Mr Obama attended a prayer service at Washington's National Cathedral, a traditional morning-after-inauguration event.

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"Now the administration goes to work. This is their first full day on the job and the best we can imagine to begin is by praying with them and for them. We have given them a great deal to do," Rev. Samuel Lloyd said, drawing laughter from the congregation.

And Mr Obama - who sat smiling in the front pew beside first lady Michelle Obama, vice president Joe Biden and his wife and Bill and Hillary Clinton - was wasting no time.

Mr Obama, who before taking office vowed a bolder pursuit of Israeli-Palestinian peace than his predecessor George W. Bush, phoned Israeli and Arab leaders to commit to "active engagement" in resolving the long-running conflict and to help consolidate the Gaza cease-fire.

"He pledged that the United States would do its part to make these efforts successful, working closely with the international community and these partners as they fulfil their responsibilities as well," White House spokesman Robert Gibbs said.

It was the strongest signal yet that Mr Obama, sworn in on Tuesday, was determined to make a clean break with Bush on policies at home and abroad.

Critics had faulted Mr Bush for taking a largely hands-off approach to Middle East peacemaking for much of his eight years in office.

Mr Obama spoke to Israeli prime inister Ehud Olmert, Palestinian president Mahmoud Abbas, Egyptian president Hosni Mubarak and Jordan's King Abdullah not long after he stepped into the Oval Office for the first time since his historic inauguration as the first black US president.

He is expected to name a Middle East envoy soon.

Mr Obama, who has vowed strong action to deal with the worst U.S. economic crisis in decades and to hammer out an exit strategy from the unpopular war in Iraq, planned separate meetings in the late afternoon with economic advisers as well as with his national security team.

He also is seeking fresh approaches to repair the battered financial system and is mulling a host of ideas, including the creation of a government-run bank that would buy up toxic assets from ailing US banks.

Iraq and Afghanistan will dominate Mr bama's foreign policy agenda, but he has also said he will take an active role to try to resolve the Israeli-Palestinian conflict.

He may move quickly to name a Middle East envoy and is strongly considering George Mitchell, a former US senator and veteran international troubleshooter who played a key role in the Northern Ireland peace process, for the job.

In addition to the economic meeting, Mr Obama will also sit down at 4.15pm EST (9.15 Irish time) with top military officials to discuss Iraq and Afghanistan.

He has said he favours a 16-month timetable for the withdrawal of US troops from Iraq, and US officials said that in his meeting with military leaders he would discuss the possibility of accelerating the US troops' departure.

Mr Obama also will discuss plans to bolster troops in Afghanistan as he meets with a Pentagon delegation led by Defence Secretary Robert Gates and Navy Adm. Mike Mullen, chairman of the Joint Chiefs of Staff.

Gen. David Petraeus, the former Iraq commander credited with pulling the country from the brink of civil war, was to attend Wednesday's meeting after flying back from Afghanistan.

The request on Guantanamo would halt proceedings in 21 pending cases, including the death penalty case against five Guantanamo prisoners accused of plotting the September 11th attacks.

Reuters