President Obama began his first full day in office with a moment of solitude in the Oval Office, reading a note from his predecessor, before making phone calls to Middle East leaders.

Obama arrived in the Oval Office and spent 10 minutes alone, reading a note left for him in the desk by outgoing President George W. Bush.

White House Chief of Staff Rahm Emanuel met with the president 10 minutes later to discuss the daily schedule.

First lady Michelle Obama joined her husband in the Oval Office at 9:10 a.m., shortly before the first couple departed for the National Prayer Service at the Washington National Cathedral.

SALARIES AT THE WHITEHOUSE:

President Barack Obama said Wednesday that he is freezing the pay of White House employees who make more than $100,000 a year.

The freeze would hold salaries at their current levels for about 100 employees. It is part of a presidential memorandum issued Wednesday when Obama attended a swearing-in for staff at the White House.

In a statement, Obama said “families are tightening their belts, and so should Washington.”

Aides making more than $100,000 include the high-profile jobs of White House chief of staff, national security adviser and press secretary. Other aides who work in relative anonymity also fit into that cap, if Obama follows a structure similar to the one George W. Bush set up.

“I appreciate your willingness,” Obama said, referring to those employees affected. “It’s a mark of your commitment to public service.”

LOBBYISTS BEWARE: 

The president announced sweeping new rules limiting involvement of lobbyists in his White House and a policy change calling for federal agencies and departments to give full attention to Freedom of Information requests and said he expects members of his administration to be responsive to such pleas.

“Transparency and the rule of law will be the touchstones of this administration,” Obama said to reporters. “We need to make the White House the people’s house.”

CALLS MIDDLE EAST LEADERS:

Obama stepped into the Middle East peace effort Wednesday morning by placing calls to four leaders from the region.

White House press secretary Robert Gibbs said Obama called Egyptian President Hosni Mubarak, Israeli Prime Minister Ehud Olmert, Jordan’s King Abdullah and Palestinian President Mahmoud Abbas.

Gibbs said Obama emphasized that he would work to consolidate the cease-fire between Israel and Hamas in Gaza.

Gibbs said Obama expressed “his commitment to active engagement in pursuit of Arab-Israeli peace from the beginning of his term.” Obama also expressed his hope for continued cooperation from the leaders.

WITHDRAWL FROM IRAQ: 

Later in the day, Obama was expected to meet with his top brass from the Pentagon.

He plans to tell the top U.S. officers that he wants them to plan to have combat forces out of Iraq in 16 months, as he promised during his election campaign, an adviser said.

“It’s something he still believes is a responsible timetable,” White House adviser David Axelrod told reporters. “But they’ll discuss it. Everyone agrees that we need to be on a pace to withdraw our troops, and how that will be implemented I’m sure will be something he’ll discuss.”

Gen. David Petraeus, whose command oversees U.S. troops in Iraq and Afghanistan, is expected to attend the meeting. Petraeus, who will have just arrived from Afghanistan and Pakistan, is expected to brief Obama on the latest developments in the region.

GUANTANAMO BAY: 

Obama’s administration was already in action Tuesday, ordering a 120-day halt to prosecutions of suspected terrorists at the U.S. prison camp at Guantanamo Bay, Cuba, to review the military commissions that try them.

Papers filed at the U.S. prison camp said the request is made “in the interest of justice and at the direction of the president of the United States.”

SCOLDED JOE BIDEN:

At the end of his remarks to his new staff, Obama informed Biden he would do the honors of swearing them in.

“Am I doing this again?” Biden said.

“Senior staff,” Obama curtly replied.

“My memory is not as good as Justice Roberts,” Biden said, attempting a joke about the Chief Justice’s fumbled swearing in of Obama on Tuesday.

The staffers in the room laughed, and said, “Ooooh…”

Obama stood stone faced and visibly annoyed. He tapped Biden on the shoulder and subtly shook his head.

ECONOMY:

President Barack Obama’s economic team is pushing to complete a bank-rescue plan that can be twinned with the $825 billion stimulus package being negotiated with Congress to alleviate the rapidly deepening financial crisis.

The president meets with his economic advisers today. One option that may be gaining ground: coupling the establishment of a so-called bad bank to buy some toxic assets with government guarantees to limit losses on those that remain on banks’ balance sheets.

(Sources: CNN / Politico / Fox / CBS)