Obama appoints Volcker to chair market panel

US president-elect Barack Obama today named former Federal Reserve chairman Paul Volcker as chair of a new panel that will advise…

US president-elect Barack Obama today named former Federal Reserve chairman Paul Volcker as chair of a new panel that will advise him on stabilising financial markets and averting a painful recession.

"At this defining moment for our nation, the old ways of thinking and acting just won't do. They call for us to seek fresh thinking and bold new ideas from the leading minds across America," Mr Obama said in a speech unveiling the new President's Economic Recovery Advisory Board.

"Today I'm pleased to announce the formation of a new institution to help our economic team accomplish these goals," he said.

The new board is modeled on an advisory panel that gives the president nonpartisan advice on national security matters, Mr Obama said.

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Mr Volcker (81), has been an important economic adviser to Mr Obama on economic issues. As Federal Reserve chairman in the early 1980s, he was credited with taming inflation through policies that also contributed to a recession at the time.

The move is another step toward tackling the problems ailing the US  economy and is part of an aggressive effort by Mr Obama to demonstrate that his administration will face the global financial crisis head-on when he takes office on January 20th.

In news conferences earlier this week, Mr Obama outlined plans for a massive stimulus package and unveiled other members of his economic team, including New York Federal Reserve president Tim Geithner to be his Treasury secretary.