Newly inaugurated President Barack Obama ordered a pay freeze for White House employees earning over $100,000 a year on his first full day in office - about 120 staffers.

"During this period of economic emergency," Obama said Wednesday, "families are tightening their belts, and so should Washington."

On average, White House staffers get a 1%-4% raise each year, so by freezing salaries Obama is saving the government about $443,000 next year.