PRESIDENT-ELECT Barack Obama has promised the biggest investment in public infrastructure the United States has seen since the federal highways programme in the 1950s but warned that the economy would get worse before it gets better.
In his most extensive interview since the election, Mr Obama told NBC's Meet the Press it was more important to provide "a blood infusion" to the economy than to limit the federal deficit.
"The key for us is making sure that we jump-start that economy in a way that doesn't just deal with the short term, doesn't just create jobs immediately, but also puts us on a glide path for long-term, sustainable economic growth," he said.
Mr Obama, who takes office on January 20th, plans to invest billions of dollars in new roads and bridges, improving school buildings and introducing electronic medical records.
"All those things are not only immediate - part of an immediate stimulus package to the economy, but they're also downpayments on the kind of long-term, sustainable growth that we need," he said.
The president-elect backed away from a promise to immediately rescind President George Bush's tax cuts for the richest Americans, suggesting that he could simply allow them to expire in 2011.
He criticised the current administration for failing to help home-owners who face repossession as property values tumble, arguing that keeping people in their homes helps the entire economy.
"When you have foreclosures, property values decline and you get a downward spiral all across America. It's also good for the financial system because it keep in mind how this financial system became so precarious in the first place. You had a huge amount of debt, a huge amount of other people's money that was being lent, and speculation was taking place on - based on these home mortgages. And if we can strengthen those assets, then that will strengthen the financial system as a whole," he said.
At a press conference in Chicago later yesterday, Mr Obama named retired general Eric Shinseki as head of Veteran Affairs in his administration. Gen Shinseki was driven into retirement by the Bush administration after he said the original invasion plan for Iraq did not include enough troops. "We don't have to do our troops and our veterans a favour, we have a sacred trust to repay one," Mr Obama said.
"That starts with recognising that for many of today's troops and their families, the war doesn't end when they come home.
"Far too many are suffering from the signature injuries of the wars in Iraq and Afghanistan - Post-Traumatic Stress Disorder and Traumatic Brain Injury. And far too few are receiving the screening and treatment they need. The servicemen and women who embody what's best about America should get the best care we have to offer, and that is what we will provide when I am president."
The president-elect refused to be drawn on speculation that New York governor David Patterson could choose Caroline Kennedy, daughter of the assassinated president, to fill Hillary Clinton's Senate seat when the former first lady becomes secretary of state.
"Caroline Kennedy has become one of my dearest friends and is just a wonderful American, a wonderful person, but the last thing I want to do is get involved in New York politics," he told Meet the Press.
On foreign policy, Mr Obama restated his intention to initiate direct diplomacy with Iran but he had harsh words for Russia, declaring it was time to "reset" its relationship with the US.
"They are increasingly assertive. And when it comes to Georgia and their threats against their neighbouring countries, I think they've been acting in a way that's contrary to international norms," he said. "We want to co-operate with them where we can, and there are a whole host of areas, particularly around non-proliferation of weapons and terrorism, where we can co-operate. But we also have to send a clear message that they have to act in ways that are not bullying their neighbours."