Jack Lew, right, with President Obama. (Photo: AP)

Paul Krugman must be crushed.

White House chief of staff Jack Lew is reportedly President Barack Obama’s pick to replace Treasury Secretary Tim Geithner.

The Associated Press, citing anonymous sources within the administration, reported Wednesday that “White House officials would not confirm that a final decision had been made. But aides did not dispute that Lew is emerging as the consensus choice.”

An announcement is possible before the end of the week.

The news service notes Lew, a budget expert, “would bring to the Treasury Department a wide range of experiences in both the public and private sector.” He ran the Office of Management and Budget in Obama’s first term, as well as under former President Bill Clinton, and held top jobs at Citigroup.

Lew, 57, first joined the Obama administration at the State Department, where he oversaw international economic issues. An observant Jew who doesn’t work on Saturday, he is well-liked in Washington by both Democrats and Republicans. Calling him “a pragmatic liberal,” the AP notes he has been a key player in several negotiations between the White House and Capitol Hill, including the recent talks to avert the fiscal cliff.

The AP adds that Lew’s nomination would signal Obama’s intent to keep Treasury close to the White House sphere as Obama engages with Congress on fiscal issues and as the administration continues to implement key aspects of the financial regulation overhaul that Geithner helped shepherd into law in 2010.