Mr Obama said he intended to create and save 2.5 million US jobs by investing in the national infrastructure.
But he stressed that the scale of the problem required action by the US in tandem with other governments.
Mr Obama also named his top economic advisers, confirming Timothy Geithner as the next treasury secretary.
Mr Obama said that having served in senior roles at Treasury, the IMF and the New York Federal Reserve, Mr Geithner would offer "an unparalleled understanding of our current economic crisis, in all of its depth, complexity and urgency".
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