Daley selected as Obama's new chief of staff

President Barack Obama tapped former commerce secretary William Daley as his permanent chief of staff Thursday, bringing in a seasoned political operative with Wall Street bona fides to manage his administration heading into the re-election campaign.

Daley, 62, assuming one of the most influential positions in government, replaces Pete Rouse, who served on an interim basis and will remain in a new role as counselor to the president.

Despite coming from a famed Chicago political family and having ties across the Democratic establishment, Daley is not a part of Obama's inner circle. The two met several times recently as Obama gauged his comfort level and weighed the value of bringing in an outsider to run his group of advisers, officials said.

After months of consideration, Obama concluded that Daley could help lead the country out of a stagnant economy. Introducing him Thursday in the East Room, Obama said Daley has "led major corporations; he possesses a deep understanding of how jobs are created and how to grow our economy."

"I am convinced he'll help us in our mission of growing our economy and moving America forward," Obama said.

Daley, who served in the Clinton administration and ran Al Gore's presidential race, came highly recommended by trusted White House figures. He traveled extensively with Vice President Joe Biden during his 1988 presidential campaign, has a long-standing friendship with senior adviser David Axelrod and is close to the previous chief of staff, Rahm Emanuel, who is running to succeed his older brother, Richard M. Daley, as mayor of Chicago. Their father is former Mayor Richard J. Daley.

Obama's announcement set in motion an overhaul of his West Wing staff, which continues Friday with the expected choice of Gene Sperling to head the National Economic Council.

In tapping Daley, Obama may achieve multiple goals. A lawyer and Midwest chairman of J. P. Morgan Chase, Daley could help restore the administration's frayed relationship with Wall Street and speak credibly on unemployment.

A veteran of past partisan battles, Daley will also be tasked with managing the new Republican House. And he will introduce an outsider's perspective, potentially bringing in other new advisers to a White House that has been criticized as too insular.

In brief remarks, Daley recalled visiting the White House with his parents in 1960, and compared Obama with former President John F. Kennedy, saying, "You have shown through your example that public service is an honorable calling, and I am pleased to answer your call."