President Barack Obama today named Clinton-era veteran Gene Sperling as the new director of his National Economic Council (NEC), saying he has a record of helping turn US budget deficits into surpluses.
In a speech, Mr Obama called the decline in the jobless rate in December from 9.8 per cent to 9.4 per cent positive news but said much more needs to be done to boost US hiring and growth.
Mr Sperling's pick to replace Larry Summers at the economic council follows Mr Obama's naming of a new chief of staff and the resignation of his press secretary, as the president shakes up his team after Republicans took control of the House of Representatives this week.
The NEC co-ordinates economic policy across the administration, and its head wields great influence within the White House.
Mr Obama was speaking at the Thompson Creek Window Company in Landover, Maryland, this afternoon after the release of December's employment report.
Mr Sperling, an advisor to Treasury Secretary Timothy Geithner, served as head of the NEC for former president Bill Clinton between 1997 and 2000, and helped Mr Clinton battle the Republicans and, eventually, balance the budget.
Mr Obama, who must boost growth to ease US unemployment stuck just below 10 per cent or be punished in 2012's presidential election, yesterday tapped another former Clinton aide, William Daley, an executive at JP Morgan Chase, as his chief of staff.
Press secretary Robert Gibbs also plans to step down early next month to become an outside adviser to Mr Obama's re-election campaign.
The changes, as Mr Obama enters the second two years of his term, reflect the White House's need to adapt to the new balance of power in Washington after Republicans won big against Mr Obama's Democrats in November elections.
Republicans tapped into public fury over government spending and a $1.3 trillion budget deficit, and vow to use their increased congressional muscle to undo Mr Obama's healthcare reform program and curb federal borrowing.
Mr Obama, who says he expects a tough debate over spending and taxes, late last year enlisted another old Clinton hand when he picked Jack Lew to lead the Office of Management and Budget (OMB).
In addition to Mr Sperling, Mr Obama will announce the promotion of Jason Furman to the number two slot at the council, the official said. Mr Obama will also announce his plan to nominate Katharine Abraham to the White House Council of Economic Advisers and Heather Higginbottom as deputy director of OMB.
Reuters