For No. 2 at Fed, White House favours central banker in the Bernanke mold

Stanley Fischer, the former governor of the Bank of Israel and a mentor to the Federal Reserve's chairman, Ben S Bernanke, is the leading candidate to become vice-chairman of the Fed, according to former and current administration officials. If nominated, and then confirmed by the Senate, Fischer, 70, would succeed Janet L Yellen, whom President Obama nominated to succeed Bernanke as the Fed's leader when his term ends in January.

Fischer is at once a surprising choice and a popular pick among economists and investors. He is a highly regarded economist with significant policy-making experience, yet many had considered his selection improbable because of his recent service in a foreign government. News about Fischer's possible nomination was reported on Israeli television.

That experience could become a concern if he is nominated, as could his experience at Citigroup, where he was vice chairman between 2002 and 2005. The company's expansion during that period eventually ended in a federal bailout.

As Fed vice-chairman, Fischer might exert a moderating influence on Yellen, echoing, in a way, her intellectual partnership with Bernanke. Yellen is a forceful advocate for the Fed's efforts to stimulate the economy and reduce unemployment.

©2013 The New York Times News Service