(CNN) -- President-elect Barack Obama on Tuesday is expected to talk about what kinds of "cuts and sacrifices" are needed in Washington to rebuild the economy, a process that he says "will not be easy."

At a news conference Tuesday, Obama also is expected to announce that he has selected Peter Orszag as his nominee for director of the Office of Management and Budget, according to two sources close to Obama's transition operation.

Orszag, the head of the Congressional Budget Office, is an expert on health care, pensions and Social Security policy. He worked at the Clinton White House as special assistant to the president at the National Economic Council and served on the Council of Economic Advisers.

The move comes a day after the president-elect announced key members of his economic team, including New York Federal Reserve President Tim Geithner as his choice for treasury secretary and former Treasury Secretary Larry Summers as his selection for chief of the National Economic Council.

As Obama unveiled the team, he called the financial crisis one of "historic proportions" and said that he and the Bush administration are "united" in their efforts to get the economy back on track.

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

Obama said Monday that he hopes the new Congress will begin work on an aggressive economic recovery plan when it convenes in January so his administration can "hit the ground running."

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