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Obama to Name William Daley as Chief of Staff

William Daley
Alex Wong/Getty Images for Meet the Press

Updated at 12:55 p.m. ET

President Obama is naming William Daley his new chief of staff, CBS News confirms. The president will announce the personnel change at 2:30 p.m. today.

Daley, former commerce secretary under President Clinton and a current JPMorgan Chase & Co. executive, will replace interim chief of staff Peter Rouse.

Rouse, who reportedly did not want to stay on the job, will remain at the White House in the job of counselor to the president, the White House tells CBS News Senior White House Correspondent Bill Plante. He's served as chief of staff since Rahm Emanuel departed the White House last fall to pursue a mayoral bid in Chicago.

Mr. Obama was looking for a chief of staff with close ties to the business community, CBS News chief political consultant Marc Ambinder reports, since adding jobs to the economy is the White House's top priority.

U.S. Chamber of Commerce President Thomas Donohue, who has had a contentious relationship with the Obama White House, praised the appointment.

"Bill Daley is a man of stature and extraordinary experience in government, business, trade negotiations, and global affairs," Donohue said. "He's an accomplished manager and strong leader. We look forward to working with him to accelerate our recovery, grow the economy, create jobs, and tackle America's global challenges."

Some liberal activists and pundits, however, are wary of Daley's ties to Wall Street, as well as his moderate views. Daley has expressed disapproval for the president's health care reforms and reportedly for Wall Street reform as well.

"This was a real mistake by the White House," said Adam Green, co-founder of the Progressive Change Campaign Committee. "Bill Daley consistently urges the Democratic Party to pursue a corporate agenda that alienates both Independent and Democratic voters. If President Obama listens to that kind of political advice from Bill Daley, Democrats will suffer a disastrous 2012."??

The Republican Party is attacking Daley for previously serving on the board for Fannie Mae, the mortgage giant Republicans have said they want to reform.

The move comes amid a broader White House staff shake up, which is typical two years into an administration. White House adviser David Axelrod is moving to Chicago to work on Mr. Obama's re-election, and White House Press Secretary Robert Gibbs also recently announced his departure. Mr. Obama's deputy chiefs of staff, Jim Messina and Mona Sutphen, are also leaving. David Plouffe, Mr. Obama's presidential campaign manager, will be joining the senior staff of the White House next week.

"The president's needs over the next two years are going to be significantly different than the president's needs over the past two, so he needs a different cast of people and a different structure," Ambinder says. "What Obama needs over the next two years are staffers who can help him communicate better with the public and can manage effectively the executive branch."

Chief of staff is one of the most demanding jobs in the White House; Daley will influence everything from how Mr. Obama spends his time to how he pursues his domestic and foreign policies.

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