Volcker to head Obama's economic advisory committee

27 November 2008

President-elect Barack Obama has named the 81-year old former chief of Federal Reserve Board, Paul Volcker, as head of the new White House economic advisory committee, in what he said, to tap minds that have an unconventional thinking.

Volcker, a professor at the University of Chicago, was the Federal Reserve chief under presidents Carter and Regan and is best remembered for bringing down high inflation in the late 1970s caused by the first oil shocks.

Announcing the appointment at a news conference in Chicago, Obama said, ''Volcker is one of the world's foremost economic policy experts and has served under both Republicans and Democrats and is held in the highest esteem for his sound and independent judgment. He has a long and distinguished record of service to our nation, and I am pleased that he has answered the call to serve once again.''

"So, you know, I was elected with the charge of getting this economy back in shape but also making sure that it's working on behalf of middle-class families," he said.

"In order to do that, I've tried to bring together the best economic minds, people who don't always agree with each other but all share a commitment to making sure that we're growing the pie and that equal opportunity is a reality in our economy, that the American dream remains alive."

Volcker had been advising Obama on the economy for many months, even during the course of his election campaign and had advised him to back Paulson's plea for the $700- billion bailout fund.