In Reversal, Geithner Now Expected To Stay Put

Treasury Secretary Tim Geithner is expected to remain at his post atop the Obama administration's economic team through the end of the president’s first term, the New York Times reported Thursday.

The report, which cites unnamed sources within the White House, comes after a month of speculation over whether Geithner would resign from his job. Geithner said in early June that he would decide on his future after Congress reached a deal on a debt-ceiling increase, which has now been achieved.

Although some of Obama's advisers cautioned that Geithner could still decide to resign, they said he has responded to urging from the president to stay in his position.

According to the officials, Obama favors continuing Geithner's term because the two have developed a close relationship, and the president wants to avoid changing leadership at the Treasury during a time when the American economy is ailing.

Another incentive for the Obama administration to keep Geithner, officials said, is to avoid a potentially bruising confirmation battle over a successor.

So far, Geithner has refrained from commenting on his future at the Treasury. "I haven’t made that decision yet," Geithner told ABC News on Tuesday. He added, "We’ve got a lot of challenges, president’s got a lot of challenges, and, you know, I got other pressures on me, too."

In June, Geithner's wife moved back to New York in order to allow their son to finish high school where he grew up. Geithner has also been under intense strain since the beginning of the credit crisis – from his time as a hard-hitting financial negotiator during the meltdown in 2008 to his more recent role as a soother of global markets amid gridlock on the debt ceiling. Geithner is the last remaining member of the top economic team Obama appointed after taking office.