Senior senator Jeff Sessions has accused treasury secretary nominee of dishonesty as Obama confirms appointment choice

The Obama administration’s hopes that the US Senate would swiftly confirm Jack Lew as treasury secretary were dealt a blow on Thursday when a senior Republican accused the president’s nominee of dishonesty.

In his formal nomination announcement, Barack Obama urged the Senate to confirm Lew quickly, describing him as a man capable of forging bipartisan, principled compromises.

But the overture was immediately rebuffed by the most senior Republican on the Senate budget committee, Jeff Sessions, who accused Lew of being dishonest and promised an “aggressive” campaign against his nomination.

Lew had been widely expected to sail through the nominating process but the warning Sessions reflects the deeply polarised nature of Washington, especially over budget and tax issues.

Obama formally announced at a press conference at the White House Thursday that Lew, his chief of staff, would be his nominee to replace Tim Geithner. Lew and Geithner flanked the president as he gave a statement praising both men.

Lew, a longtime Democrat, has been involved in budget battles going back to the early 1980s, through the Clinton years and in the Obama administration. In spite of Republicans having frequently emerged bruised from the encounters, describing him as uncompromising, the commonly held view in Washington was that he was well-enough liked to make it through the nomination process unscathed.

But Sessions appeared to dash hopes of an easy nomination process. “Jack Lew must never be secretary of treasury,” he said. Sessions said comments made by Lew two years ago, when he claimed that Obama’s budget plans would steer the US to a position where “we’re not adding to the debt anymore”, were “outrageous and false”.

Obama, in his statement, anticipated the coming battles with Republicans in Congress, beginning with a showdown over the $16.4tn debt ceiling late next month and further battles over deep spending cuts. 

The president claimed Lew was well qualified for the job of balancing the budget. “Under President Clinton, he presided over three budget surpluses in a row.” In word aimed at Republicans in Congress, he added: “So for all the talk out there about deficit reduction, making sure our books are balanced, this is the guy who did it. Three times.”

He described Lew as a low-key, more interested in a discussion with other policy-makers than appearing on television. “Over the years he has built a reputation as a master of policy who can work with members of both parties and forge principled compromises.”

The Republicans want cuts in welfare programmes but the Obama administration wants to protect key elements, such as healthcare for the elderly, Medicare, and for the poor, Medicaid, and would rather cut defence spending. The Obama administration also wants tax revenue raising measures included in the mix.

With this in mind, Obama said of Lew: “Maybe most importantly, as the son of a Polish immigrant, a man of deep and devout faith, Jack knows that every number on the page, every dollar we budget, every decision we make, has to be an expression of who we wish to be as a nation, our values, the values that says everyone gets a fair shot at opportunity and says we expect all of us to fulfill our obligations as citizens in return.”

Obama added: “Jack has my complete trust … So I hope the senate will confirm him as quickly as possible.”

This completes the top trio of cabinet appointments, Obama having already nominated John Kerry as secretary of state and Chuck Hagel as defence secretary.

Obama praised Geithner for helping to restore the economy after its collapse.

The Republicans want Obama to begin cutting federal spending in return for raising the $16.4tn borrowing limit, a potential re-run of a stand-off that almost saw the federal government close down in 2011. Obama said earlier this month that raising the debt ceiling should be routine for Congress and he will not engage with Congress this time.

As treasury secretary, Lew’s signature will appear on currency. His series of loops has started speculation over whether he will try for a more readable signature, as did Geithner.

Obama joked that if Lew did not make at least one of his loops legible, he wound rescind his nomination.