President George W. Bush nominated top White House economic adviser Ben Bernanke as chairman of the Federal Reserve Board on Monday to succeed the near-legendary Alan Greenspan.
Greenspan, 79, is set to step down on Jan. 31 after more than 18 years at the helm of the U.S. Central bank.
“The decisions of the Fed affect the lives and livelihood of all Americans,” Bush said at the White House as Bernanke and Greenspan looked on. He said his choice “Commands deep respect in the financial community.”
It was the third time in as many years the president has turned to the 51-year-old Bernanke for a sensitive post. Bush named him to the Fed board in 2002, then made him chairman of the president’s Council of Economic Advisers earlier this year.
Bernanke is a top monetary economist who has long advocated setting formal targets for inflation to help guide monetary policy, a position Greenspan has long opposed.
Bernanke, currently chairman of the White House Council of Economic Advisers, must still be approved by the U.S. Senate for the top Fed job. However, he went through a rigorous confirmation screening just over four months ago for his White House post, which may ease the way.