Obama rounds out team for 'urgent work' on economy

U.S. president-elect Barack Obama continued to build his economic advisory team on Wednesday, naming former Federal Reserve chairman Paul Volcker to head a new White House panel to create jobs and bring stability to the country's embattled financial system.

Volcker, 81, who served under both Jimmy Carter and Ronald Reagan, will head the President's Economic Recovery Advisory Board. The board's top staff official will be Austan Goolsbee, a University of Chicago economist, Obama told reporters in Chicago.

The Democratic president-elect also sought to assure Americans who are worried about the state of the nation's economy and their own finances ahead of the year's busiest shopping period that "help is on the way." 

Earlier in the week, Obama promised his administration would introduce a massive stimulus package that would create 2.5 million new jobs, but has refused to offer specific details or estimated costs of the plan.

"American people must have confidence that we have gone through recessions before," Obama said. "Our future is bright if we make good decisions."

Obama, who is scheduled to take office in less than two months, called Volcker "one of the world's foremost economic policy experts" who "pulls no punches," also praising Goolsbee as "one of America's most promising economic minds."

The new board, modelled after an existing foreign intelligence advisory committee, will include members from business, academia and government, and will report regularly to the president as part of the "urgent work needed" to restore economic strength in the United States, Obama said.

He said the combination of Volcker and Goolsbee will offer "experience with fresh thinking" to combat the "echo chamber" of ideas inside the capital that tend to supress outside views.

"They are there to challenge some of our assumptions to make sure we are not doing the same old thing all the time," Obama said. "The reality is that sometimes policy-making in Washington can become a little bit too ingrown, a little bit too insular."

Obama deflects questions on Gates, Clinton rumours

The announcement comes amid media reports that Obama plans to keep Defence Secretary Robert Gates, appointed in 2006 by outgoing President George W. Bush, in the key position for at least a year.

On Tuesday, Obama introduced Peter Orszag as his pick for White House budget director, where he will oversee a federal belt-tightening push the president-elect says is a "necessity" to ensure "a more efficient and effective" government.

His economic team largely complete, Obama is expected next week to announce national security officials, including Hillary Clinton as his secretary of state. Aides said the New York senator has not yet formally accepted the offer, but transition officials have indicated the nomination is on track.

But Obama on Wednesday deflected questions about Clinton and former Democratic Senate leader Tom Daschle, another high-profile figure in the party rumoured to be named to a key health-care position.

"We're not talking about my cabinet because I haven't made those appointments yet," Obama said.