President Bush has named as his top economic adviser an Indiana businessman and former state Republican Party chairman who was one of Bush's top fund-raisers for both presidential campaigns.

Allan Hubbard (search) will replace Stephen Friedman (search), who is leaving government, White House press secretary Scott McClellan said Monday. The appointment will place Hubbard at the center of major second-term Bush initiatives such as overhauling Social Security and the tax code.

In addition to becoming assistant to the president for economic policy, responsible for directing economic policy-making throughout the administration, Hubbard will take over Friedman's role as director of the National Economic Council (search). The Clinton administration created the NEC to coordinate economic policy for the White House in much the same way that the National Security Council coordinates foreign policy.

Hubbard is president of the E&A Industries (search) chemical conglomerate, based in Indianapolis. During Bush's presidential races, Hubbard -- a classmate of the president's at Harvard Business School in the early 1970s -- was one of 246 "pioneers" who raised at least $100,000 for the 2000 campaign and one of 221 "rangers" who raised at least $200,000 for last year's race. Separately, Hubbard's wife Kathy was also a pioneer in 2000 and a ranger in 2004.

For the 2000 campaign, Hubbard also served as a domestic policy adviser to Bush, and two years later, he participated in Bush's August 2002 economic summit in Texas.

In the administration of Bush's father, he was a deputy chief of staff to Vice President Dan Quayle, who appointed him to the deregulatory Council on Competitiveness (search).

McClellan also announced that Candida Wolff (search) will replace David Hobbs as Bush's chief lobbyist and liaison to Capitol Hill. Wolff was Vice President Dick Cheney's legislative affairs director before joining Washington Council Ernst & Young as a partner. Wolff also worked as an aide to then-Sen. Malcolm Wallop, R-Wyo., and as deputy staff director of the Senate Republican policy committee.