UPDATE 1-Obama to name Tarullo to open Fed seat-Bloomberg

WASHINGTON Dec 18 (Reuters) - U.S. President-elect Barack Obama on Thursday will name Daniel Tarullo, a Georgetown University law professor, to take an open seat on the Federal Reserve Board, Bloomberg News reported, citing a Democrat familiar with the decision.

Tarullo, 57, is one of Obama's economic policy advisers and was President Bill Clinton's top adviser on international economic policy.

The Federal Reserve Board has two vacancies on its seven-member panel. Tarullo, who must be confirmed by the Senate, would join Chairman Ben Bernanke as the Fed tries to ease a credit crisis and combat a deepening recession.

On Tuesday, the Fed slashed its key interest rate to as low a zero and pledged to use "all available tools" to prop up the deteriorating economy.

Obama, who takes office on Jan. 20, is also expected on Thursday to name seasoned regulator Mary Schapiro to head the Securities and Exchange Commission.

Schapiro served as an SEC commissioner for six years and is currently chief executive of the Financial Industry Regulatory Authority, a self-regulatory body for the securities industry.

The announcements are expected at an Obama press conference in Chicago planned for 9:45 a.m. Central time (1545 GMT).

(Writing by Eric Beech)