WASHINGTON (Reuters) – The economic crisis will not stop President-elect Barack Obama from expanding health care, overhauling education and energy policy, and passing a middle-class tax cut soon after he takes office in January, senior aides said on Sunday. Meanwhile the U.S. Congress should act to ease the pain of an economy sliding into recession by extending unemployment benefits and boosting aid to states struggling to meet their health-care obligations, they said. Obama's transitional team has outlined an ambitious agenda for the next several months as it scrambles to assemble an administration in the face of what is widely viewed as the worst economic slump since the Great Depression. The economic crisis will not prevent Obama from pursuing the priorities he outlined on the campaign trail, said John Podesta, co-chair of Obama's transition team.

Obama to use executive orders for immediate impact

WASHINGTON – President-elect Obama plans to use his executive powers to make an immediate impact when he takes office, perhaps reversing Bush administration policies on stem cell research and domestic drilling for oil and natural gas.

Podesta also said Obama is working to build a diverse Cabinet. That includes reaching out to Republicans and independents — part of the broad coalition that supported Obama during the race against Republican John McCain. Defense Secretary Robert Gates has been mentioned as a possible holdover. "He's not even a Republican," Senate Majority Leader Harry Reid of Nevada said. "Why wouldn't we want to keep him? He's never been a registered Republican."