June 16 (Bloomberg) -- U.S. President Barack Obama praised Federal Reserve Chairman Ben S. Bernanke for doing an “extraordinary job” while declining to comment on whether he plans to nominate the central bank chief for a second term.

Bernanke has “done an extraordinary job under extraordinary circumstances,” Obama said today in an interview with Bloomberg Television at the White House. On a potential reappointment, Obama said, “I’m not making news on that today.”

Bernanke, 55, has been responsible for the Fed’s unprecedented response to the financial crisis and recession, including lowering the main interest rate almost to zero; purchasing as much as $1.75 trillion in Treasuries and housing debt; and starting emergency-loan programs to aid bond dealers, mutual funds and corporations.

A former Princeton University economist, Bernanke was appointed by Obama’s predecessor, George W. Bush, to succeed Alan Greenspan as the U.S. central bank chief in February 2006. Bernanke’s initial four-year term as chairman ends Jan. 31, and his re-nomination or a new candidate would require Senate approval.

Bernanke, a Republican, has a separate 14-year term as a Fed governor that ends in 2020. Bush appointed him to the Fed Board of Governors in 2002 and then as chairman of the White House’s Council of Economic Advisers in 2005.

Traders using online exchange Intrade place a 70 percent chance on Bernanke being reappointed for a second term.

Tomorrow the administration will propose new regulations that give the Fed responsibility over risks in the financial system as a whole. “We think that the Fed is best positioned to do that,” Obama said in the interview.

Curb Crisis

As part of efforts to curb the credit crisis, Bernanke agreed to bailouts involving four financial companies: Bear Stearns Cos., American International Group Inc., Citigroup Inc. and Bank of America Corp.

Obama has made one appointment to the Fed board since the November election: Daniel Tarullo, a former Clinton administration official. In addition to the decision on Bernanke, Obama still has two vacancies to fill among the seven- member Fed board.

Lawrence Summers, the former Treasury secretary who heads Obama’s National Economic Council, has been mentioned as a possible successor should Bernanke not be re-nominated.

To contact the reporter on this story: Scott Lanman in Washington at slanman@bloomberg.net.

Last Updated: June 16, 2009 16:31 EDT