If confirmed by the Senate, Kennedy would replace US Ambassador to Japan John Roos, who has been serving in this position since 2009.
Obama made the announcement along with nomination of some other key administration post, including Marcel Lettre as the Principal Deputy Under Secretary of Defense for Intelligence, Department of Defense.
"These fine public servants both bring a depth of experience and tremendous dedication to their new roles. Our nation will be well-served by these individuals, and I look forward to working with them in the months and years to come," Obama said in a statement.
In September 2012, she was appointed as a General Trustee of the Board of Trustees of the John F Kennedy Center for the Performing Arts.
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From 2002 to 2012, she served as Vice Chair of the Fund for Public Schools in New York City.
She is also on the Board of Directors of New Visions for Public Schools and serves as Honorary Chair of the American Ballet Theater.
From 1994 to 2011, she served on the Board of Directors of the Commission on Presidential Debates.