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With the US facing the prospect of a recession, President George W Bush on Thursday spoke of the economic challenges that lay ahead for Barack Obama, saying the president-elect will get little time to settle down.

“We face economic challenges that will not pause to let a new president settle in,” Bush said, while calling on members of his administration to give full support for a smooth transition of power to Obama.

He pointed out that the Illinois senator will also have to take forward the war on terror.

“This will also be America’s first wartime presidential transition in four decades. We’re in a struggle against violent extremists determined to attack us, and they would like nothing more than to exploit this period of change to harm the American people,” he said.

Noting that “the peaceful transfer of power is one of the hallmarks of a true democracy”, Bush promised that this will be his priority during his remaining period as president.

“So for the next 75 days, all of us must ensure that the next president and his team can hit the ground running. To help address the global financial crisis, the secretary of treasury is working endless hours, and I will host an international summit here in Washington on November the 15th.

“This will be an historic meeting. And I’m confident that you will work hard to help make it a success. We’ll also keep urging Congress to approve America’s free trade agreements with Colombia, Panama and South Korea,” Bush said, adding he is scheduled to meet Obama early next week.

“And we will continue to protect this homeland by defeating terrorists and extremists abroad so we do not have to face them here at home,” he added.

“… As we head into the final stretch, I ask you to remain focused on the goals ahead. I will be honoured to stand with you at the finish line,” Bush said.

Bush said that he will direct his administration to brief Obama on the current problems being faced by the country.

“In the coming weeks, we will ask administration officials to brief the Obama team on ongoing policy issues ranging from the financial markets to the war in Iraq.

“For more than a year now, departments and agencies throughout the federal government have been preparing for a smooth transition. We provided intelligence briefings to the president-elect and the Department of Justice has approved security clearances for members of his transition team.”

Accompanied by First Lady Laura Bush, Vice President Dick Cheney and along with Members of his Cabinet at the White House, Bush lauded the election of the first African American to the US presidency.

“This is an exciting time for our country. Earlier this week, more than 120 million people voted for a new president and Congress; one of the largest turnouts in the history of the country. No matter how we cast our ballots, this election gives us all reason to be proud of our democracy and our country.

“And I hope you will join Laura and me in congratulating President-elect Obama and wishing him the very best for his family and our country,” Bush said.

Obama to hold press conference on Friday

US president-elect Barack Obama will hold his first post-election news conference in Chicago on Friday following a meeting with his top economic advisers, aides said.

As speculation mounted over the Democrat’s pick of Treasury secretary, a statement on Thursday from his office said Obama would address the press at 1:30 pm US time on Friday (0100 IST Saturday) in a Chicago hotel.

The news conference will follow the meeting with Obama’s economic team including former Treasury secretaries Larry Summers and Robert Rubin, ex-Federal Reserve chief Paul Volcker and Google chairman Eric Schmidt.

Summers and Volcker are among the names being touted to take over as Obama’s chief economic overseer as the Treasury dispenses a 700-billion-dollar bailout package for Wall Street.

New York Fed chief Timothy Geithner is also mentioned, along with Laura Tyson, who was chairwoman of the National Economic Council in Bill Clinton’s White House.

Other participants at on Friday’s meeting will be vice president-elect Joseph Biden, Michigan Governor Jennifer Granholm, and former Securities and Exchange Commission chairman William Donaldson.

Billionaire investor Warren Buffet will take part via telephone, the statement said.

Since Obama’s election triumph Tuesday, US and global stock markets have plunged on growing fears the world economy faces a deep and long recession despite efforts by the US government and Fed to shore up the banking system.

Top economic advisers to Obama are meanwhile expected to attend a White House summit of 20 nations, including India, on 15th November, as world leaders attempt to thrash out a coordinated response to the crisis.