Washington - The Washington rumor mill has been churning for the last few days as President-elect Barack Obama (web|news|bio) considers possible candidates for his cabinet and staff. Leading the speculation today is the possibility of D.C. attorney Eric Holder for attorney general.

Being tapped as attorney general would return Holder to familiar territory: the Justice Department, where he served as deputy attorney general in the Clinton administration. It would also secure a place for him in the history books, as the nation's first African-American attorney general.

Well regarded in that role, he was still the target of some crticism, notably for the April 2000 raid of the Miami home of then 6-year-old Cuban refugee Elian Gonzalez, as well as for supporting the former president's pardon of fugitive financier Marc Rich, a major Clinton supporter who fled the country to avoid prosecution for evading millions in taxes.

One D.C. resident notes, "I've watched when Eric Holder was in office before, so it's good to see him back and I think he'll bring a good attitude into the Justice Department."

Also still grist for the rumor mill is the possibility of Senator Hillary Clinton being named as a candidate for secretary of state. At a speaking engagement in Kuwait City over the weekend, her husband, former president Bill Clinton, noted, "I think she'd be really great as secretary of state."

But paid appearances like the Kuwait City even are complicating Senator Clinton's vetting process. President Clinton reportedly made more than $10 million last year from similar events. Recognizing the difficulties posed by his activities, President Clinton has offered concessions to help out his wife, including more transparency of his charitable foundation's fundraising and backing away from the foundation's daily operations.

And finally, Capitol Hill Democrats say President-elect Obama appears to have settled on Congressional Budget Office chief Peter Orszag to be his budget director. It's among the toughest jobs in Washington, but Democratic aides say Orszag seems likely to accept it once offered by Obama.