US: The US yesterday named Rob Portman, the politically-savvy trade representative, to head the White House budget office, a move that signals growing concern over runaway spending and a downgrading of trade policy in the administration's second term.
In a sign of the status he will enjoy as new head of the Office of Management and Budget, president George Bush said Mr Portman would have "a leading role on my economic team. He will be part of daily senior staff meetings led by Josh Bolten [White House chief of staff].
"He will consult often and work closely with legislators on Capitol Hill. He will be a powerful voice for pro-growth policies and spending restraint."
But the decision to move Mr Portman after only 11 months as the United States' trade representative also provoked fears that the White House was downgrading trade as a political priority.
Mr Portman was brought in to conclude the "Doha Round" world trade agreement and shore up waning congressional support for Mr Bush's trade agenda.
"There is an awful lot of negativism now about the prospect of trade liberalisation and a backsliding on trade," a leading Republican strategist confirmed.
Mr Portman, a former congressman from Ohio who is popular within the Republican party, is seen as a Bush loyalist. In the House he voted for Mr Bush's tax cuts in 2001 and 2003 and was seen as an effective legislator.
The appointment reflects the sense of urgency coming from Mr Bolten, who took over as chief of staff on Monday. Given Mr Bush's penchant for loyalty, rather than openly fire people, he has instead given Mr Bolten the authority to overhaul the White House staff.
Mr Bolten's first action was to tell senior staff that if they were thinking of leaving, they should do so now. "Josh talked about how this is a time to refresh and re-energise the team," said Scott McClellan, White House spokesman.