One of Barack Obama's top advisers yesterday called on Congress to begin work on an economic rescue plan even before the new administration takes office, and hinted the president-elect could hold off introducing new taxes for his first two years.

David Axelrod, Mr Obama's chief political adviser, said passing a massive economic stimulus package would be the president-elect's top priority after his inauguration in January, amid deepening fears of a long and severe recession. Mr Obama is expected to flesh out his plans today when he holds a news conference to announce his choice of Tim Geithner, president of the Federal Reserve Bank of New York, to succeed Hank Paulson as treasury secretary.

Over the weekend, the president-elect revealed the outlines of an economic recovery plan aimed at creating or saving 2.5m jobs by January 2011 through investment in infrastructure, public services and “green” technology.