ON DECK CIRCLE:

White House chooses Bernanke for CEA (Andrew Balls and James Harding, April 2 2005, Financial Times)

The White House has nominated Ben Bernanke to serve as chairman of the Council of Economic Advisers, wrapping up the lead appointments to President George W. Bush's second- term economic team.

Mr Bernanke's nomination will stoke speculation about his prospects of succeeding Alan Greenspan as chairman of the Federal Reserve at the start of next year.

Mr Bernanke, an influential Fed governor, is expected to step aside from the meetings of the Fed's policymaking Open Market Committee while he awaits Senate confirmation.

“I am honoured by the president's intent to nominate me and subject to Senate confirmation I look forward to this new opportunity,” Mr Bernanke said.

The appointment will be seen as an attempt by the White House to draw on the credibility and expertise of the Federal Reserve as it makes the case for Social Security and tax reform. Mr Bush has chosen Allan Hubbard, a campaign fundraiser and a businessman from Indianapolis, to serve as his chief economic adviser. The choice of Mr Bernanke, therefore, is intended to bring in the skills of a highly regarded economist.