CHICAGO: Barack Obama on Wednesday named New Mexico Governor Bill Richardson as his commerce secretary, dubbing him a top "economic diplomat" who would help lead the United States out of the financial crisis.

The president-elect added to his rapidly-filling cabinet at a news conference here and denied the post was a consolation for Richardson, a former Democratic presidential rival, who was passed over for secretary of state.

Richardson, 61, will start "laying the groundwork for long-term prosperity to help American businesses grow and thrive at home and expand our efforts to promote American enterprise around the world," Obama said.

"This work is the core mission of the secretary of commerce and with his breadth and depth of experience in public life, Governor Richardson is uniquely suited for this role as a leading economic diplomat for America."

Richardson, 61, a veteran diplomatic troubleshooter, ex-lawmaker, and energy secretary and United Nations ambassador under president Bill Clinton, had been tipped to head the State Department, but Obama chose Hillary Clinton instead.

Obama dismissed the idea that Richardson's assignment would disappoint Latino voters who helped him win battleground states Florida, New Mexico, Colorado and Nevada.

"Commerce secretary is a pretty good job," he said.

"The notion that somehow the commerce secretary is not going to be central to everything we do is fundamentally mistaken," he said, and held out the prospect of adding more Hispanic members to his half-formed cabinet.

Richardson, who spoke in both English and Spanish, said he was honoured to be chosen.

"There's a vital role for the Department of Commerce in our economic recovery," he said.

"The official role of the department is job creation, economic growth, sustainable development, and improving living standards - the same goals of your economic plan, Mr. President-elect."

Richardson's appointment won backing from the man he will replace, Secretary Carlos Gutierrez, who noted his successors "strong international experience."

"Richardson has the credibility and expertise to negotiate with our foreign partners and ensure that American businesses and workers have open markets and a fair playing field on which to compete," he said in a statement.

In a light-hearted moment, Obama ribbed Richardson for shaving his beard, which he said had given the New Mexico governor a "western rugged look."

"For some reason, maybe because it was scratchy when he kissed his wife, he was forced to get rid of it."

Richardson mounted an unsuccessful challenge for the Democratic presidential nomination, hoping to become the first Hispanic US president.

He then switched allegiances to back Obama over Hillary Clinton, despite his ties to former president Clinton.

Once dubbed the "Indiana Jones" of US diplomacy, Richardson is famed for head-to-head encounters with strongmen leaders on the US pariah list, including Iraq's executed president Saddam Hussein and Cuba's Fidel Castro.

Janet Murguia, president of National Council La Raza, the largest US Latino organisation, said she was disappointed that Richardson had been passed over for secretary of state but was glad he secured a cabinet spot.

She also expressed hopes that other Hispanic leaders would be included in Obama's cabinet, as the president-elect has yet to name posts such as Labor secretary, education secretary and US Trade Representative.

"We're still optimistic we will see a cabinet that reflects a coalition of communities that helped to elect President Obama," she said.

The Commerce department in recent years has played second fiddle to Treasury in terms of domestic economic policy and international trade matters, but it is a cabinet level position and the nominee can play a role in both.

The department manages a host of statistical operations including the population census, and also the International Trade Administration which can enforce actions on dumping and unfair trade.

Commerce also manages telecommunications and copyright (intellectual property) issues through its agencies as well as the National Oceanic and Atmospheric Administration weather service.

- AFP/de/yb