White House chief of staff resigns

White House Chief of Staff Bill Daley is stepping down and will be replaced by Jack Lew, the administration’s budget director, President Obama said Monday.

“Bill told me that he wanted to spend more time with his family,” Obama said from the White House, with Daley to his left and Lew to his right. “I didn’t expect Bill’s decision right away. I asked him to take a couple days to make sure that he was sure about this.”

Daley submitted his letter of resignation to Obama on Tuesday during a meeting in the Oval Office, a senior administration official said. The official said details on Lew’s replacement are forthcoming.

“No one in my administration has had to make more important decisions more quickly than Bill,” Obama said. “There is no question that I’m going to deeply miss having Bill by my side at the White House.”

A former banking executive, Daley has served as Obama’s chief of staff for the last year, succeeding Chicago Mayor Rahm Emanuel in January 2011. Daley was brought on to help ease tensions between the White House and congressional Republicans, but he clashed with some White House staffers and in November, Daley announced he was shifting most of his day-to-day responsibilities to long-time Obama aide Pete Rouse.

But Rouse won’t be taking over the job now that Daley is leaving.

“Naturally, when Bill told me his plans to go back to Chicago, I asked him who he thought could fill his shoes,” Obama said. “He told me that there was one clear choice and I believe he’s right. So today I’m pleased to announce that Jack Lew has agreed to serve as my next chief of staff.”

Lew was deputy director of the U.S. State Department under Hillary Clinton before becoming Obama’s budget chief at the White House. He served as budget director in the Clinton administration and senior policy adviser to former House Speaker Thomas “Tip” O’Neill.

“I have every confidence that Jack won’t miss a beat,” Obama said. Lew and Daley made no remarks.

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