If confirmed by the Senate, Raskin would be the first woman to serve in the department's No. 2 position.
Her move also would open a second vacancy on the Fed's Board of Governors. Elizabeth Duke said recently she would step down from the seven-member board in August.
Raskin would replace Deputy Secretary Neal Wolin, who recently announced he would step down at the end of August after serving since 2009.
Raskin, a former state banking regulator, has been a Fed governor since 2010. She has been outspoken in her criticism of what she has called "sloppy and deceptive practices" by mortgage servicers and has called for more government action in the housing market.
Obama chose her for the Fed job and now has nominated her for a top Treasury post amid criticism that he has few women in high-ranking positions in his second term.
In addition to her regulatory background, Raskin has financial industry experience. She was managing director at the Promontory Financial Group, an industry consulting firm, from 2003 to 2007. She was commissioner of financial regulation in Maryland from 2007 until 2010.
"As a Federal Reserve governor and former state banking regulator, Sarah has a deep understanding of banking and financial regulatory issues as well as a firm grasp of how to run large, complex organizations," Treasury Secretary Jacob J. Lew said.
"Throughout her career, Sarah has demonstrated a strong commitment to protecting consumers, and she shares my conviction to do everything possible to increase job creation, accelerate economic growth and strengthen the middle class," he said.
[For the record, 6:38 p.m. July 31: An earlier version of this post misspelled Neal Wolin's first name. Also, he will not be leaving the position until the end of August.]