President Bush on Wednesday promoted Harvey Rosen to be chairman of his Council of Economic Advisers, the group that advises him on economic issues and prepares the administration's annual economic report to Congress

Rosen, a former economics professor at Princeton University, is a member of the council. He succeeds Gregory Mankiw, who resigned last week to return to his teaching post at Harvard University.

Rosen is considered one of the country's leading experts on tax policy. One of Bush's top domestic goals in his second term is to overhaul the country's tax system to make it simpler.

Rosen's promotion was announced as Bush was in Europe on a five-day trip. All three members of the council must be confirmed by the Senate, but the president has the power to designate who will serve as chairman.

The other remaining council member is Kristin J. Forbes.

One of those who had been considered by the White House for the CEA chairman's job was Ben Bernanke, who is serving on the Federal Reserve Board and has been mentioned as a possible successor to Federal Reserve Chairman Alan Greenspan, whose term at the Fed will end in January.