WASHINGTON (AP) — Barack Obama will inherit two wars and the worst economic conditions in three generations when he takes the oath of office on Jan. 20. Ironically, that challenge might be a blessing for the president-elect — unemployment is so high and consumer confidence so low that even modest improvements will let him claim progress.

Barack Obama's fellow Chicagoan Rahm Emanuel, the hard-charging No. 3 Democrat in the House, has accepted the job of White House chief of staff, Democratic officials said Thursday.

President Bush and Barack Obama will hold their first substantive talks Monday as the transition to a new Democratic administration accelerates.