Washington – Speculation Growing: Who Might Replace Rahm Emanuel?

Read full story at CNN.comWashington – The smart money in Washington and Chicago, Illinois, says it’s all but a certainty that within weeks Rahm Emanuel will throw his hat into the ring to replace retiring Chicago Mayor Richard M. Daley. So the parlor game over who will replace Emanuel as White House chief of staff has already kicked into high gear.

I’ve been hitting the phones and working the BlackBerry since Daley announced his plans to step down, and a clear consensus has emerged among top strategists within the Democratic party: Two White House aides — Tom Donilon and Ron Klain — are the clear front-runners to take over Emanuel’s office just steps from the Oval Office.

But also pay close attention to a name you have not heard much about yet, but that could end up being the surprise pick: Phil Schiliro. Schiliro doesn’t grab a lot of headlines but has a huge fan in the president himself and could wind up shocking the political world by snagging the top job.

There are other big names in the running as well, from Chicago intimates like Valerie Jarrett to Washington insiders like CIA chief Leon Panetta and former Clinton chief of staff John Podesta. Other candidates with more outsider credentials could emerge if the president ultimately decides he wants to shake things up a bit more to signal a fresh start. But the betting among top Democrats is that the ultimate choice will be an insider.

“I don’t think they are going to go very far out of their orbit,” said one top Democratic strategist who’s in close touch with the White House.

A second top Democrat with close ties to the West Wing said flatly: “I’ve heard three names: Donilon, Schiliro, and Klain.”

But this top Democrat cautioned that the ultimate decision is, of course, up to the president himself, and Obama always has the option to go outside the circle. “If he goes outside, a lot of people could be in play,” said this source.