National Economic Council

National Economic Council
Name	National Economic Council
Formed	January 25, 1993
Jurisdiction	Federal government of the United States
Headquarters	Eisenhower Executive Office Building, Washington, D.C.
Chief1 name	Lael Brainard
Chief1 position	Director
Parent department	Executive Office of the President of the United States

National Economic Council. The National Economic Council is the principal forum used by the President of the United States for considering economic policy matters and coordinating the creation and implementation of the administration's domestic and international economic agenda. Established by Executive Order 12835 on January 25, 1993, by President Bill Clinton, it operates within the Executive Office of the President and is led by a Director who also serves as Assistant to the President for Economic Policy. The council works to integrate the perspectives of various cabinet departments and executive agencies to provide coherent advice to the White House.

History and establishment

The National Economic Council was created in the early days of the Clinton administration through Executive Order 12835, a move intended to mirror the structure and influence of the National Security Council. Its establishment was driven by a desire for more coordinated and strategic economic policymaking following the 1992 United States presidential election and amidst challenges like the Early 1990s recession. The first director was Robert Rubin, who later became United States Secretary of the Treasury. The creation of this body marked a significant institutionalization of economic advice within the White House Office, centralizing functions that were previously dispersed among the Council of Economic Advisers, the Office of Management and Budget, and the Department of the Treasury. Its formation was influenced by the model of economic coordination seen in other nations and the perceived success of the National Security Council in foreign policy.

Structure and organization

The National Economic Council is headed by a Director, a position held by prominent figures such as Lael Brainard, Gary Cohn, and Lawrence Summers. The Director, who holds the title of Assistant to the President for Economic Policy, is supported by several Deputy Assistants and a staff of specialists drawn from various fields including economics, finance, and public policy. The council's members include the Vice President of the United States, the Secretary of State, the Secretary of the Treasury, and the heads of other key executive departments like the Department of Commerce and the Department of Labor. It is physically housed in the Eisenhower Executive Office Building next to the West Wing. This structure is designed to facilitate rapid consultation and decision-making, integrating input from across the federal government.

Functions and responsibilities

The primary function is to coordinate the development and implementation of all major aspects of the President's economic policy agenda. This involves advising the President on global and domestic economic issues, resolving interagency disputes over economic policy, and ensuring policy decisions are consistent with the administration's stated goals. The council manages the process for considering economic issues that require attention from multiple agencies, such as international trade negotiations, financial regulation, tax policy, and responses to economic crises. It plays a central role in preparing the President for multilateral meetings like the G7 and G20 summits. The council also works closely with the National Security Council on matters of economic security and geopolitics.

Key initiatives and policy impact

Throughout its history, the council has been instrumental in shaping significant economic policies. Under Director Robert Rubin, it was central to crafting the Omnibus Budget Reconciliation Act of 1993 and advocating for the North American Free Trade Agreement. During the Great Recession, the council, led by Lawrence Summers, was pivotal in developing the Emergency Economic Stabilization Act of 2008 and the subsequent American Recovery and Reinvestment Act of 2009. In the Trump administration, Director Gary Cohn helped shepherd the passage of the Tax Cuts and Jobs Act of 2017. More recently, under the Biden administration, the council played a key role in formulating the American Rescue Plan Act of 2021 and the Infrastructure Investment and Jobs Act.

Relationship with other government bodies

The National Economic Council maintains a complex, collaborative, and sometimes competitive relationship with other economic agencies within the Executive Office of the President. It works alongside the Council of Economic Advisers, which provides more academic and empirical analysis, and the Office of Management and Budget, which focuses on budgetary formulation and execution. Externally, it coordinates closely with cabinet-level departments, particularly the Department of the Treasury and the Department of Commerce. On international matters, it interacts with institutions like the International Monetary Fund and the World Bank. Its relationship with the National Security Council has grown increasingly important in addressing issues at the intersection of economics and national security, such as semiconductor supply chains and sanctions against Russia.

List of directors

* Robert Rubin (1993–1995) * Laura Tyson (1995–1996) * Gene Sperling (1996–2001) * Lawrence Lindsey (2001–2002) * Stephen Friedman (2002–2005) * Allan Hubbard (2005–2007) * Keith Hennessey (2007–2009) * Lawrence Summers (2009–2011) * Gene Sperling (2011–2014) * Jeffrey Zients (2014–2017) * Gary Cohn (2017–2018) * Lawrence Kudlow (2018–2021) * Brian Deese (2021–2023) * Lael Brainard (2023–present)

Category:Executive Office of the President of the United States Category:Economic policy in the United States