Both husband and wife were said to be pleased with the reception they got, and advisers suggested that the outcome could encourage Daniels to run for president. Even so, Republicans in Washington and Indiana with ties to Daniels put the odds at 50-50.

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A former budget director under President George W. Bush, Daniels used his time considering a run to also shine a spotlight on rising budget deficits and national debt, even though his former boss grew the scope of government and federal spending during his tenure.

Daniels, a one-time senior executive at Eli Lilly & Co., caused a stir among cultural conservatives by saying the next president facing economic crisis "would have to call a truce on the so-called social issues."

He is looked with admiration in GOP circles for being the rare Republican who won office in a Democratic year — 2008 — in a state that Obama had won. And, since being re-elected, he has leveraged Republican majorities in the state Legislature to push through a conservative agenda.

Daniels made his intentions clear in a characteristically understated e-mail.

It was sent by the governor through Eric Holcomb, the Indiana Republican Party chairman and one of Daniels' closest advisers, and confirmed by others close to the governor on the condition of anonymity to avoid pre-empting his announcement.

It ended: "Many thanks for your help and input during this period of reflection. Please stay in touch if you see ways in which an obscure Midwestern governor might make a constructive contribution to the rebuilding of our economy and our Republic."