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Going Soft? AP Says U.S. Chamber Won't Oppose Obama in '12, Supports QE2

"There are issues that we both have in common that we both want to see progress on."

WASHINGTON (AP) -- Declaring "this is not personal," the U.S. Chamber of Commerce president said Wednesday that his trade group would work with the White House, despite the chamber's hardcharging midterm election campaign and continued opposition to Obama administration policies.

Chamber President Thomas Donohue vowed to fight what he called a "regulatory tsunami" facing American business, singling out President Barack Obama's signature initiatives of the new health care overhaul and financial regulations law.

"We have never seen anything of this scale before," he said of the rules under consideration. "It defies all logic and common sense."

But Donohue was careful to separate opposition to the president's policies and opposition to the president, and he sought to reassure the business community that the chamber's quarrels with the president had not marginalized the association. He said that the giant trade association will stay out of the 2012 presidential elections and that it was cooperating with the administration on jobs and trade.

The declaration comes after the chamber spent more than $32 million in political ads during the midterm elections, most of them aimed against Democrats. Obama criticized the chamber during the campaign for not disclosing its donors.

The White House also stressed cooperation on Wednesday.

"There are issues that we both have in common that we both want to see progress on," White House press secretary Robert Gibbs said.

The chamber's political relationships are multilayered and don't hue specifically to one party on all issues. Though more closely aligned with Republicans, the chamber worked with the Obama administration to win support for continuing the $700 billion rescue of the banking sector, for its $800 billion economic stimulus and to assist financially reeling automakers.

But Obama and the chamber quarreled loudly during the debate on health care and on an overhaul of financial regulations.

In his speech, Donohue said the administration's call for disclosure of its donors was an effort to "silence the business community." Chamber supporters, if revealed, would be come targets of "intimidation and harassment," he argued.

Donohue also voiced support for monetary policy initiatives by the Federal Reserve under Fed Chairman Ben Bernanke. He cautioned lawmakers not to encroach on the independence of the Fed, putting him at odds with many Republicans who have objected to the Fed's decision to keep borrowing rates low by purchasing $600 billion in Treasury debt.

On Tuesday, Sen. Bob Corker, R-Tenn., and senior House Republicans Mike Pence of Indiana and Tom Price of Georgia called for the Fed to focus primarily on guarding against inflation instead of encouraging more employment. They said the Fed's efforts on job growth threatened to weaken the dollar.

Donohue said Bernanke "acted in an important way and we must maintain the independence of the Fed and be very, very careful not to louse that up on Capitol Hill."

In an overture to the administration, the chamber's board met privately Wednesday with Treasury Secretary Timothy Geithner and U.S Trade Representative Ron Kirk. House Republican Leader John Boehner, the Speaker-in-waiting, and Republican Sen. John Thune of South Dakota also met with the board.

Even if the chamber does not actively inject itself into the presidential election, it inevitably will clash publicly with the administration, leaving little doubt about its views of Obama's presidency.

But Donohue's stance is also pragmatic. The chamber is seeking to influence the administration on issues of international trade, including a South Korea commercial pact that Obama was unable to clinch in Seoul last week. Donohue was in South Korea at the same time.

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