President George W. Bush has nominated White House economic adviser Ben Bernanke to succeed Alan Greenspan as chairman of the Federal Reserve, a post that will give the former Fed board governor huge sway over the world's richest economy.
"Ben Bernanke is the right man to build on the record Alan Greenspan has established," Mr Bush said in an Oval Office ceremony with Mr Greenspan and Mr Bernanke at his side.
Mr Greenspan (79), is set to step down on January 31st after more than 18 years at the helm of the US central bank.
Taking the microphone after Mr Bush spoke, Mr Bernanke hailed Mr Greenspan for setting a standard of excellence in economic policy-making.
"Our understanding of the best practice in monetary policy evolved during Alan Greenspan's tenure at the Fed, and it will continue to evolve in the future," he said.
"However, if I am confirmed to this position my first priority will be to maintain continuity with the policies and policy strategies established during the Greenspan years," Mr Bernanke said.
Stock markets and the US dollar rose on the news. US Treasury bonds, which initially fell on reports Mr Bernanke was the White House choice, pared their losses after he said his first priority would be to pursue continuity.
Mr Bernanke (51), is a top monetary economist who has long advocated setting formal targets for inflation to help guide monetary policy, a position Mr Greenspan has long opposed.