The US on Tuesday named Rob Portman, the politically savvy trade representative, to head the White House budget office, a move that signals growing concern over runaway federal 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 W. 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”.