For Obama, nothing looks easy

By Steve Holland

WASHINGTON (Reuters) - Nobody said this was going to be easy. From his suite at the historic Hay-Adams Hotel, U.S. President-elect Barack Obama is watching problems pile up as he prepares to take power in 15 days.

A plan to spend up to $1 trillion to stimulate the sagging U.S. economy will not be ready for Obama to sign as soon as he takes office on Jan. 20. Instead, negotiations could stretch into mid-February.

Israel's invasion of Gaza to quell Hamas rocket fire on its cities has pushed the Middle East higher on Obama's already long list of foreign challenges that includes Iraq, Afghanistan and Russia. Obama's silence on the Israeli action has led to some sniping abroad.

And his relatively smooth transition to power took a hit when his choice for Commerce secretary, New Mexico Gov. Bill Richardson, withdrew because of a federal investigation into a state government contractor who contributed to Richardson's political committees.

While Obama's inauguration is much-anticipated and could draw more than 1 million Americans to Washington, he takes office at a time of great national anxiety.

Developing a stimulus plan to jolt the U.S. economy back to life and get Americans back to work remains top priority. The package could quickly become the subject of partisan bickering in Congress -- a fate that Obama wants to avoid.

Aides said Obama is expected to make his case for a stimulus this week in a major speech. He made the rounds on Capitol Hill on Monday to stress that he believes the plan should not "get bogged down in a lot of old-style politics on either side."

"There's not going to be a lot of finger-pointing or posturing. The American people need action now," he said.