For eight years, Ben S. Bernanke, the former Federal Reserve chairman, was steward of the world's largest economy. Now he has signed on to advise one of Wall Street's biggest hedge funds. Mr. Bernanke will become a senior adviser to the Citadel Investment Group, the $25 billion hedge fund founded by the billionaire Kenneth C. Griffin. He will offer his analysis of global economic and financial issues to Citadel's investment committees. He will also meet with Citadel's investors around the globe. Read MoreHowto play the Fed-driven 'colossal dislocations' It is the latest and most prominent move by a Washington insider through the revolving door into the financial industry. Investors are increasingly looking for guidance on how to navigate an uncertain economic environment in the aftermath of the financial crisis and are willing to pay top dollar to former officials like Mr. Bernanke.



Former Fed Chairman Ben Bernanke, March 2, 2015 in Washington. Getty Images

Mr. Bernanke joins a long parade of colleagues and peers to Wall Street and investment firms. After stepping down, Mr. Bernanke's predecessor, Alan Greenspan, was recruited as a consultant for Deutsche Bank, the bond investment firm Pacific Investment Management Company and the hedge fund Paulson & Company. More from The New York Times:

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In an interview, Mr. Bernanke said he was sensitive to the public's anxieties about the "revolving door" between Wall Street and Washington and chose to go to Citadel, in part, because it "is not regulated by the Federal Reserve and I won't be doing lobbying of any sort."

He added that he had been recruited by banks but declined their offers. "I wanted to avoid the appearance of a conflict of interest," he said. "I ruled out any firm that was regulated by the Federal Reserve."

After stepping down last year, Mr. Bernanke hit the speaking circuit, attending dinners and conferences for hedge fund managers like David A. Tepper of Appaloosa Management, private equity executives like Michael E. Novogratz of the Fortress Investment Group and other financial institutions. At the Fed, Mr. Bernanke made $200,000 a year, a sum he can now make in a single speaking engagement. Read MoreFedhas 'tools' for smooth rates lift-off While Mr. Bernanke declined to disclose his compensation, he said he would be paid an annual fee but would not own a stake in the firm or receive a bonus based on its performance. His arrangement with Citadel is not exclusive, so he could take on other consulting roles. Mr. Bernanke said that he could not determine exactly how much time he expected to devote to Citadel.