In the spirit of President Dwight Eisenhower's Foreign Intelligence Advisory Board, President-elect Barack Obama announced today the creation of the President's Economic Recovery Advisory Board during his third news conference on the economy in as many days.

Obama said the board, which will be headed by former Federal Reserve Chairman Paul Volker, will provide and "independent, nonpartisan information, analysis, and advice" to government on economic recovery.

The president-elect says the board will be established for a two-year term and will be comprised of experts from business, labor, and academia.

"We're facing an economic crisis of historic proportions. And at this defining moment in our nation's history, the old ways of thinking and the old ways of acting just won't do," said Obama. "We're called to seek fresh thinking and bold new ideas from the leading minds across America."

Obama says Austan Goolsbee. a University of Chicago economist, will serve as staff director and chief economist of the advisory board and will act as a liaison between the board and the administration.

Yesterday, Obama added to his roster of economic advisers – nominating Peter Orszag as White House budget director.
He says Orszag will go through the federal budget to eliminate wasteful spending and make other items more cost-effective.

While Obama has mostly been focused on the economy, there's word he will announce next week that he has decided to keep Defense Secretary Robert Gates in his post for at least a year. Gates has been President George W. Bush's defense chief for two years.

However, Obama would not discuss the Associated Press report that he would announce Senate Hillary Clinton's nomination as secretary of state next week.

"We aren't talking about my cabinet because I haven't made those appointments yet," he said.

However, at a Queens food bank Wednesday, New York's senior Senator Charles Schumer was happy to talk about how qualified the state's junior senator is for the State Department post.

"People know how capable she is. She is thoughtful, she has knowledge of world leaders," said Schumer. "It's an inspired choice if it is to occur and I think the Senate will ratify it overwhelmingly."

Yet Schumer would not talk on who Governor David Paterson would tap for Clinton's seat, if she joins the Obama administration.

"No vacancy, no comment. I'm not going to comment until there is a vacancy, if there is one," said Schumer.

In recent days, there was much speculation over whether Paterson, if needed to select a replacement for Clinton, would select another woman, a Hispanic or someone from upstate.

However, the governor said Wednesday that is the wrong way to consider an appointment.

"I think that the misunderstanding about diversity is the feeling that because you might choose a woman or a person of a different nationality or a person who lives in say, the upstate region, you're doing it just to satisfy the people who live there," said Paterson.

He made it clear that at least one state politician will not be considered.

"I'm glad it's not me because I'm not appointing myself," said Paterson.

Congresswoman Kirsten Gillibrand, an upstate Democrat who has been eyed as a possible senator, tried to sidestep the issue Wednesday.

"I think we would cross the bridge when we get to it," said Gillibrand. "I think it's premature because this is an important decision for the senator and it's an important decision for the country. We have two great senators already in Senator Schumer and Senator Clinton."

The AP also cites a Democratic official who says retired General James Jones is Obama's pick to be national security advisor.

Obama is also planning to meet with the nation's governors next week. An official with the National Governors Association says 40 governors and governors-elect plan to attend the discussion on the economy. Among those scheduled to be in attendance in New York Governor David Paterson.