The Wall Street Journal-20080201-Washington Wire - Insight and Analysis From WashWire-com

Return to: The_Wall_Street_Journal-20080201

Washington Wire / Insight and Analysis From WashWire.com

Full Text (629  words)

Volcker's Backing of Obama

May Ease Doubts on Experience

Former Federal Reserve Chairman Paul Volcker, the latest big name to endorse Sen. Barack Obama, could give the Illinois Democrat a lift by lending his gravitas in the financial world to a presidential candidate whose biggest hurdle is to convince voters he is experienced enough.

"It is not the current turmoil in markets or the economic uncertainties that have impelled my decision. Rather, it is the breadth and depth of challenges that face our nation at home and abroad. Those challenges demand a new leadership and a fresh approach," Mr. Volcker, a Democrat, said in a statement.

President Carter appointed Mr. Volcker to Fed chairmanship in 1979 and President Reagan replaced him -- with Alan Greenspan -- a couple of months before the 1987 stock-market crash. He is widely respected among central bankers, Wall Street and economists for breaking the back of inflation in the 1980s -- at the cost of the deepest recession the country has seen since the Great Depression. An economist, he was earlier president of the Federal Reserve Bank of New York from 1975-79 and an undersecretary of the Treasury from 1969-74.

On Capitol Hill, the addition of California Rep. Anna Eshoo to the list of lawmakers backing Mr. Obama might provide clues to where House Speaker Nancy Pelosi is leaning since congressional leaders generally don't make endorsements in presidential primaries. Ms. Eshoo is one of Ms. Pelosi's closest friends and political allies in the House, as is California Rep. George Miller, who endorsed Mr. Obama earlier in January.

Rep. Xavier Becerra, picked by Ms. Pelosi to be assistant to the speaker when Democrats took control of the chamber, also endorsed Mr. Obama this week.

Mr. Obama "appeals to the best in us, and in doing so he restores the sense of idealism that brought me to public service. He challenges us to dream bigger and reach farther," Ms. Eshoo said in a statement.

-- Jackie Calmes and Susan Davis

Nods Can Help McCain

But Will Some Hurt?

Sen. John McCain's endorsements from Rudy Giuliani and California Gov. Arnold Schwarzenegger help solidify the Arizonan's status with independents and moderate Republicans. Among core Republican and social conservative voters, seeing Mr. McCain standing with two abortion-rights moderates could depress their enthusiasm.

"I could never ever be anything but honored by the presence of these two great American heroes," Mr. McCain said when announcing Mr. Schwarzenegger's endorsement as Mr. Giuliani stood nearby. He batted down the notion that such nods will hurt him. "You will see a flood of endorsements across this country from both liberal and conservative," he said. "We need all parts of our party together if we're going to win in November. I believe our party is beginning to realize that."

He understands he has to win over a skeptical Republican base to ensure a robust turnout in November, when it is all but certain that Democrats will be at their highest energy level in decades. His formula for doing that is to emphasize what is probably his strongest suit with that wing of the party: a hawkish foreign policy.

"I'm confident that the majority of conservatives in my party, the No. 1 priority is the threat of radical Islamic extremism. I believe that I can get a significant and overwhelming majority of those people who are members of our party to join together with all of us in a big tent party."

Texas Gov. Rick Perry, who had been the only governor to endorse Mr. Giuliani, was quick to switch his support to Mr. McCain. Mr. Perry campaigned for Mr. Giuliani in Iowa, South Carolina and Florida, "but it apparently did Giuliani little good," noted the San Antonio Express-News.

-- Alex Frangos and June Kronholz