WashPost: The Senate majority leader called the New York Gov. last week to tout Caroline Kennedy's credentials for filling Clinton's Senate seat. Adds the call wasn't prompted by Kennedy or anyone in her inner circle, but just his belief in her qualifications and ability to win reelection. Plus: NYT on why Kennedy's decision to enter politics represents a gamble on her carefully cultivated reputation. Permalink
The Dow surges more than 350 points Tuesday, after the Fed sets the lowest-ever target for the federal funds rate. WSJ: Fed acted to "combat a deepening recession and signaled they will keep rates 'exceptionally low'...." NY Times: Fed "entered a new era" with announcement, "will have to reach for new and untested tools in fighting both the recession and downward pressure on consumer prices." Permalink
A spokesman tells the AP the Illinois Rep. has been cooperating with investigators about his dealings with Blagojevich since summertime. Plus: A local station says Jackson notified investigators when Blago requested campaign cash for wife’s appointment as state lottery director. Permalink
Next week's NY Times Magazine profiles Obama’s incoming press secretary. Robert Gibbs tells the Times’s Leibovich: “I don’t know if nervous is the right word. I don’t think there’s any preparation for it.” More details here. Permalink
The Illinois special bipartisan committee met briefly Tuesday and adjourned until Wednesday, giving Blagojevich time to send a rep to the hearings. Committee chairwoman cautions panel about moving too fast: "Let us remember that we're not Alice in Wonderland. We're not the Red Queen. We do not sentence first and then do the verdict." Permalink
After speaking with reporters, Obama takes more than twice as many questions from Chicago elementary students. Says he plans to travel and meet kings and queens, wants troops home from Iraq in 18 months, and hopes his daughters learn important lessons from their new dog. "If they do their business, and you've got some poop, you don't just leave it there." Read pool report here. MORE: Click here to see a class picture. Permalink
The former House Speaker denounces the RNC's attempts to link Obama to Blago, says he was "saddened" to learn of their conduct. "From now until the inaugural, Republicans should be offering to help the President-elect prepare to take office." Permalink
At a presser in a Chicago school, the president-elect nominates Arne Duncan to lead his education team. Read release here. Adds that failing to improve classroom instruction is "morally unacceptable for our children," says Duncan has dedicated his life to education reform. Obama's full remarks here. Permalink
The president-elect cuts off a questioner asking about Emanuel's contact with the governor at Tuesday's presser, reiterates his team's internal review will be released next week. "Let me stop you right there because I don't want you to waste your question." And/But: Notes that he hasn't confirmed the Chicago Trib story saying Emanuel provided a list of acceptable Senate replacements to Blagojevich. Permalink
Behar and Hasselbeck raise questions about Kennedy’s potential appointment to the Senate on the ABC daytime show Tuesday. Behar: “We fought a war to get away from royalty....” Click above to watch. Permalink
A source says the New York Senator has told her supporters not to impede Caroline Kennedy's path to the Senate on her behalf. Permalink
The president tells Real Clear Politics that his party would benefit from having the former Florida governor serve in Washington. Says his younger brother “would be an awesome U.S. Senator.” Permalink
The VP-elect announces Tuesday TIME's Carney as his communications director, Senate staffer Elizabeth Alexander as press secretary and transition staffer Annie Tomasini as her deputy. Get details on all the picks here. Permalink
The president-elect meets with key members of his team in Chicago Tuesday, including Geithner, Summers, Orszag, Volker, Carol Browner and others. VP-elect Biden and incoming chief of staff Emanuel also attend. Get all the details here. Permalink
The former presidential candidate holds a media availability at his Tucson, Arizona Senate office Tuesday afternoon. He'll hold another Wednesday in Yuma. Plus: He'll also sit down with the Tucson Citizen Editorial Board Tuesday. Permalink
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