The new White House Chief of Staff William Daley (L) prepares to speak after US President Barack Obama (R) announced him to be his new permanent Chief of Staff in the East Room of the White House in Washington, Jan 6, 2011. [Photo/Agencies]

WASHINGTON - President Barack Obama on Thursday named JPMorgan Chase executive William Daley as his chief of staff, bringing a politically seasoned businessman into the White House to help trigger job growth as he grapples with resurgent Republicans.

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Obama said he hoped Daley would help energize the US economy. Reducing America's 9.8 percent jobless rate is Obama's biggest challenge ahead of his 2012 re-election bid.

"He possesses a deep understanding of how jobs are created and how to grow our economy," Obama said at the White House.

Daley, 62, whose appointment was welcomed by the US business community, was President Bill Clinton's commerce secretary and campaign manager for then-Vice President Al Gore in his 2000 presidential campaign.

By picking Daley to lead White House efforts to carry out his agenda, Obama brings in a manager who was not part of his original inner circle and has deep experience in both business and government. "This team will not let you down, or the nation," Daley said.

After leaving the Clinton administration, Daley was president of SBC Communications and more recently he had has been responsible for operations in the Midwest for JPMorgan Chase.

Obama had been urged by some Democratic officials to bring in fresh thinking in response to the Republican rout of Democrats in the Nov 3 congressional elections.

Obama joked that Daley has a "smidgen of awareness" of how the US political system works.

Current chief of staff Pete Rouse, a long-time Obama adviser who relishes a behind-the-scenes role, is being moved to the senior advisory position of counselor to the president.

William Galston, an economist who was a domestic policy adviser to Clinton, said Daley should help Obama repair frayed relations with the US business community, which has complained that Obama's policies hurt job creation.

"He has excellent connections with the business community and I think will be a very credible and reassuring bridge to them as the Obama administration tries to reset relations with them," Galston said.