Obama hires veteran political manager

WASHINGTON (AP):

President Barack Obama has hired William Daley to be his chief of staff, choosing a veteran political manager with Wall Street ties to direct an operation now steaming toward re-election mode.

Daley steps into one of the most important and influential jobs in American government as an adviser and gatekeeper to Obama. He replaces Pete Rouse, the interim chief of the last three months, a behind-the-scenes Obama adviser who did not want the position permanently and recommended Daley for it.

Rouse will remain as a counsellor to the president, an elevated position from his former job as senior adviser.

Two senior administration officials confirmed Obama's decision to The Associated Press, speaking on condition of anonymity because it had not yet been announced.

Obama introduced Daley on Thursday afternoon at the White House.

Although Daley carries the name of a dynastic family of politicians in Chicago, which is Obama's hometown, he and the president have not been personally close. He offers criteria Obama wants: an outsider's perspective, credibility with the business community and experience in navigating divided government.

Daley also wants the job. At 62, the move will thrust him into the heart of national politics just as Obama adapts to a new reality in Washington, with Republicans controlling the House, working to gut his signature health care law and pushing for major cuts in spending. Obama informed his senior advisers of the change in a meeting on Thursday. He made clear that no one is more valuable to him than Rouse, according to one of the officials in the room. The set-up means Obama gets both officials: Daley to run the gruelling operation, Rouse to offer a range of advice.

The move comes as Obama ushers in change across his senior leadership - the result of internal staff fatigue, a need to shift energy and people to Obama's 2012 re-election campaign, and an adaptation to the fresh limits on Obama's power.