Obama picks Princeton economist as top adviser

US President Barack Obama today nominated Alan Krueger, the Princeton University economist, as his top adviser to boost the country's economy ahead of the 2012 presidential election.

Fifty-year-old Krueger was designated the chairman of the Council of Economic Advisers (CEA), which is a three-member body to advise the president on economic matters.

"Alan understands the difficult challenges our country faces, and I have confidence that he will help us meet those challenges as one of the leaders on my economic team," Obama said in a statement.

If confirmed by the Senate, Krueger will continue the CEA’s important work of developing and offering the President economic advice on the formulation of both domestic and international economic policy, the White House said.

The Council bases its recommendations and analysis on economic research and empirical evidence, using the best data available to support the President in setting our nation's economic policy.

Obama is mulling over a new economic package to boost employment. Media reports suggested that Krueger would advocate more concerted action to tackle 9.1 per cent unemployment.

If confirmed, Krueger would replace Austan Goolsbee, who left the administration earlier this month.

He previously served as assistant secretary for economic policy and chief economist at the US department of the treasury during Obama's first two years in the White House (2009-10) and as chief economist at the US department of labour (1994-95).