President-elect Barack Obama announced Wednesday that he is creating a new economic recovery board to provide a "fresh perspective" for his administration.

The board will be headed by Paul Volcker, who served as the chairman of the Federal Reserve from 1979 through 1987, serving under Presidents Carter and Reagan.

Following his tenure there, he worked in the private sector as an investment banker until 1996. Volcker also headed the investigation into the United Nations' oil-for-food program for Iraq.

"The reality is that sometimes policymaking in Washington can become a little bit too ingrown," Obama said at a news conference in Chicago, Illinois.
"The walls of the echo chamber can sometimes keep out fresh voices and new ways of thinking ... This board will provide that perspective to me and my administration, with an infusion of ideas from across the country and from all sectors of our economy," he said.

The new board will advise Obama on how to revive the ailing economy.
Obama senior adviser Austan Goolsbee will be the chief economist on the board. The group is expected to exist for two years, but could be extended for longer. The eight to 16 people involved will meet roughly once a month, two transition officials tell CNN.

Obama said he would announce the rest of the board members in the coming weeks.

Obama pledged Tuesday to go through the federal budget "page by page, line by line" to eliminate excessive spending and get the economy back on track.

"If we are going to make the investments we need, we also have to be willing to shed the spending that we don't need," Obama said at a news conference in Chicago, Illinois.

Those named to Obama's economic team have started working on crafting an economic recovery plan. The group also must figure out how best to allocate the rest of the $700 billion bailout that Congress passed in October.

Obama has said he hopes the new Congress will begin work on an aggressive economic recovery plan when it convenes in January so his administration can immediately get to work. The president-elect said Tuesday that it is important that his administration not "stumble" into office but "hit the ground running."

An economic stimulus package is central to Obama's plan. He declined Monday to speculate on how big the stimulus would need to be, saying, "We are going to do what's required to jolt this economy back into shape."

Volcker to head board of economic experts -