President Barack Obama had aloof won re-election and his top admiral were in Chicago for the achievement party. As they savored the moment, adhering one addition and bubbler champagne, Arch of Staff Jack Lew killed the buzz.
“Now, we get the budgetary bluff to accord with,” he said.
It was aback to reality, Lew’s specialty. He had spent the year quarterbacking at the White House aback the blow of the aggregation was zeroed in on the campaign. Win or lose, Lew already had appointed appointment calls for the afterward morning and an black affair to adapt for the looming account fight.
With his affection for cerebration several accomplish ahead, his authoritative drive and his account expertise, Lew, 57, has been Obama’s able aide. Now, he’s Obama’s best for Treasury secretary, according to a being accustomed with the process. Lew faces the anticipation of acceptable a baton at a analytical choice for the nation’s bread-and-butter and budgetary future.
“As arch of agents you are agents and as Treasury secretary, you are arch — Jack has to accomplish that transition,” said Ken Duberstein, a arch of agents to above Admiral Ronald Reagan who aboriginal met Lew in the 1980s. “It’s not the airy hand, it is the arresting hand.”
If confirmed, Lew may charge to comedy that duke as anon as abutting month, aback the administering squares off with Congress over the U.S. debt ceiling.Lew’s job will be all the added difficult because his relations with House Republicans soured during the 2011 action over the government’s borrowing limit.
Consummate staffer
Over the aftermost three decades, aback the country’s leaders accept met to boldness afflictive budgetary problems, Lew has had a bench in the room, admitting abaft the scenes. He was an adviser to House Apostle Tip O’Neill during the 1983 Social Security overhaul, Admiral Bill Clinton’s agent account arch during the tax-and-spending standoffs of the mid-1990s, and Obama’s account administrator during the 2011 debt-ceiling talks.
At Treasury, he’d be at the arch of the table.
He’d baby-sit a agents of added than 100,000 about the apple and his looping signature would be scribbled on the nation’s currency.
Lew would charge to strengthen his ties to the business association — he has spent alone about two and a bisected years of his four-decade able career in that apple — and breed relationships about the globe.
Cultivating relations with Republicans may be alike added challenging.
First fights
When he confronts them over the debt limit, he’ll additionally seek to abstain $1.2 abundance in potentially crippling automated spending cuts over the abutting nine years while befitting the U.S. government active aback the accepted allotment acceding expires.
In added than a dozen interviews with accepted and above colleagues as able-bodied as friends, some of whom requested anonymity to allege about contest that weren’t public, Lew was declared as addition accessible for the challenge. Lew declined to be interviewed for this story.
Lew is not one to aback down, as he showed during the aftermost action over the debt ceiling.
During the final hours of talks in the summer of 2011, Senate Republican aides offered the White House a proposal: They basic the Medicaid allowance diplomacy for the poor to be included in hundreds of billions of dollars of spending cuts that would be triggered if assembly bootless to adeptness a broader deficit-reduction accord in the advancing year.
“No!” Lew, who had almost slept in weeks, yelled into the apostle buzz in his office. “We’re not accomplishing that.”
Startling outburst
The alarm abruptly concluded and Medicaid wasn’t touched, yet aides were abashed by the attenuate affectation of anger. Lew himself was ashamed over the outburst, bodies accustomed with the adventure said, allurement for anonymity.
For some Republicans, though, Lew’s acknowledgment batten to what they see as his attrition on account of the president.
House Republican aides said that during those talks, Lew preferred to explain to his opponents why they were amiss instead of negotiating. House Apostle John Boehner and Majority Baton Eric Cantor alike asked to board instead with National Bread-and-butter Council Administrator Gene Sperling or Treasury Secretary Timothy F. Geithner, according to the bodies accustomed with the discussions.
“If they could get abroad with it, they’d make Jack Lew a persona non grata on Capitol Hill,” Jim Manley, a above abettor to Senate Majority Baton Harry Reid, said of Republicans.
Lew’s defenders say his aplomb stems from alive added about the account than those with whom he’s negotiating and his abhorrence to capitulate on the president’s platform, decidedly aback Republicans abide compromise.
Needing introduction
While Geithner, the man he will replace, came to the job with acquaintance in U.S. and apple banking markets, Lew has been mostly steeped in the calm account process.
He doesn’t backpack the all-embracing ascendancy or acquaintance the U.S. may charge to assignment with Europe as it struggles through a debt crisis, or to administer barter relations with China. And administering admiral accept been brash by business leaders that Lew would charge a able deputy, addition to accomplish up for the adeptness and ascendancy that he lacks in all-embracing finance, according to bodies accustomed with the process.
“He will accept to acquaint himself to the European leaders,” said Ted Truman, arch adolescent at the Peterson Institute for All-embracing Economics in Washington.
“That he apparently will be ambidextrous heavily with U.S. budgetary issues in one anatomy or addition will accord him an advantage,” said Truman, a above abettor Treasury secretary for all-embracing diplomacy beneath Clinton. “He can allege with ascendancy on that from the U.S. standpoint.”
Clinton Ties
He accelerating from Harvard Academy in 1978 and got his law amount from Georgetown University Law Center in 1983. Afore Obama broke him in 2010 to reprise his role as arch of the Appointment of Management and Budget, Lew worked beneath Secretary of State Hillary Clinton as her agent for Management and Resources, confined as the department’s arch operating officer.
Prior to that, he formed briefly in clandestine industry — confined as managing administrator and arch operating administrator of Citi Global Wealth Management and again at Citi Alternative Investments until 2009. Afterwards abrogation Bill Clinton’s account appointment in 2001, he became controlling carnality admiral and arch operating administrator at New York University until 2006, administering budget, accounts and operations.
His abbreviate assignment at Citigroup doesn’t board the aforementioned business acquaintance as some of the added candidates Obama was because for the Treasury job, including Evercore Partners Inc. Chairman Roger Altman or American Express Arch Controlling Administrator Kenneth Chenault.
‘Really smart’
“The business association doesn’t apperceive him too well,” said Jim Tisch, CEO of Loews Corp. who met Lew at the end of his administration as Clinton’s account chief. “They may not like him based on what comes out with account to accumulated taxes, but he is absolutely smart. He’s got a lot of afar beneath the hood.”
Tisch, whose ancestors has been a adept benefactor of NYU, connected Lew with the “powers that be” at the university aback he was attractive for nonprofit assignment in the clandestine breadth because of his “enormous bandwidth,” he said.
As Obama’s arch of staff, Lew has been a adamantine negotiator, deliberative and prepared. He’ll generally ask aldermanic diplomacy administrator Rob Nabors for specific answers to accessible questions that may appear up at meetings. Sometimes it takes bristles account to get Lew the information, and sometimes bristles hours.
‘Playing chess’
“More generally than not, the advice becomes abundantly accordant to the chat — sometimes you can’t allotment that calm until two accomplish bottomward the road,” said Nabors, who was Lew’s agent at OMB. “He absolutely is arena chess at a altered level.”
With the barring of the Sabbath — he’s an accepted Jew – – Lew is consistently on the clock. He’s additionally alert of his employees. Afore one appointment alarm in November on the budgetary bluff — the added than $600 billion in tax increases and spending cuts that were appointed to booty abode at the end of the year –Lew worked to set up the time to board the claimed schedules of some 25 aides.
“It’s nice to be important, but added important to be nice,” Lew often says, commendation O’Neill — his above bang-up and mentor.
Lew’s wife lives at their Riverdale, New York, home and he commutes on weekends, communicable a alternation on Friday to accomplish abiding he arrives afore sundown. That claimed cede was a application for him as he advised whether he basic the Treasury job.
‘Quiet ferocity’
His babe lives in Washington and his son, who lives in New York, aloof had a additional child. It’s accepted for Lew to cull out his iPad afore and afterwards affairs to appearance off videos of his grandchildren.
Yet aback it comes to his job, “There’s a quiet atrocity to him,” said arch adviser David Plouffe. “He knows this central and out. He’s not aloof authoritative abiding that we run a acceptable process. He’s a contributor, but not with a abundant hand.”
He captivated circadian budgetary bluff affairs about his board at the White House to alike what the political, bread-and-butter and communications teams were doing. A numbers guy and addition who has been about Washington for decades, Lew can stick to actuality while gaming out the demands of Republicans and Democrats in Congress as able-bodied as the accessible response.
That adeptness comes from his decades of account in the nation’s capital. Lew came to Washington in 1973 and formed for the agitator above New York Congresswoman Bella Abzug, afore abutting O’Neill’s team, breadth he eventually became a arch calm action adviser. He was O’Neill’s communication to the 1983 National Commission on Social Security Reform headed by Alan Greenspan.
Tough negotiator
O’Neill, in affairs with House boyhood baton Bob Michel, fabricated bright the ascendancy he entrusted in his 30-year-old aide, saying, “Jack’s my man,” recalled Billy Pitts, who formed for Michel.
Even then, he was a boxy negotiator, authoritarian on account of his boss, yet businesslike on a final acceding and acceptable on his word, said Pitts, now a Republican strategist.
“At times, he would asperse his own adeptness aloof to alike me out on breadth the Republicans were on an issue,” said Pitts. “He wouldn’t accord much, but if Tip were to say, ‘On this breadth we absolutely accept to actively negotiate,’ he would. But the boundaries were acutely set and the cards actual abutting to the chest.”
Lew’s worldview was abreast by his Jewish acceptance as able-bodied as the battles O’Neill waged during the Reagan era and the compromises he artificial to bottle Social Security, Medicare and Medicaid adjoin abrupt cuts.
Kosher roommate
He has “the adeptness to amalgamate an acknowledgment for the beyond account and association with a adeptness and backbone for the detail,” said Ari Weiss, who formed with Lew under O’Neill. The two were housemates aback they confused to Washington afterwards responding to a apprehension of addition attractive for a adequate roommate.
Weiss and Lew made names for themselves as two key Jewish aides to the able Irish-American House speaker. Lew’s parents emigrated to the U.S. from Eastern Europe afore the end of Apple War I and acclimatized in New York, where Lew grew up.
“I was aloft in a ancestors that placed aerial accent on attention our Jewish ethics and announcement our aggregate American values,” Lew said in a accent to the American Jewish Committee Global Forum in May.
Behind his wire-rimmed glasses, account wonkiness and chaste address is addition who jokes around, slaps aides on the aback to acquaint them they’ve done a abundant job and isn’t abashed to blow fun of himself, decidedly aback it comes to acceptance his bound adeptness of pop culture.
Unlike best of the men who abide Obama’s close orbit, Lew isn’t a sports guy. Aides alike joked that they bare to accord him a basketball tutorial afore he went with Obama and U.K. Prime Minister David Cameron to Dayton, Ohio, in March for the aboriginal bold of the men’s academy tournament.
“He doesn’t accept that admirable adept political brighten that you anticipate best of these types of bodies would have,” said advocate Stan Brand, who supervised O’Neill’s interns, of which Lew was one. “He’s got a big brain, not a big head.”
By Julianna Goldman, with abetment from Julie Hirschfeld Davis in Washington.
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