New York City Mayor Michael Bloomberg (I) praised Caroline Kennedy just as talk swirls that she could succeed Hillary Rodham Clinton (D-N.Y.) in the Senate.

"Caroline Kennedy is a very experienced woman, she's worked very hard for the city," Bloomberg told the Associated Press in Washington on Monday.

"I can just tell you she's made an enormous difference in New York City," he added.

With Sen. Clinton to become secretary of State, New York Gov. David Paterson (D) must soon appoint her replacement. Paterson and Kennedy, who worked on President-elect Obama's campaign, spoke last week about the job. Her uncle, Robert F. Kennedy (D), held the same Senate seat in the 1960s.

Bloomberg said that Kennedy is "very compentent" and "can do anything." But he stopped short of directly endorsing her for the post.

"The governor has obviously a lot of good candidates to pick from and I won't be presumptuous enough to try to insert myself into what's obviously a very difficult situation for him," Bloomberg said.