William Daley Resigns as White House Chief of Staff

AP with CNBC.com

William Daley is resigning as President Barack Obama's chief of staff just one year into the one of the most pivotal jobs in politics.

Newly appointed White House Chief of Staff William Daley
Getty Images

Daley is to be replaced by Jacob Lew, now the White House budget director. In a press conference Monday, President Obama announced the change will become effective at the end of the month.

"There is no question that I'm going to deeply miss having Bill by my side at the White House," Obama said, adding remarks of trust, confidence, and congratulations to next chief of staff, Jacob Lew.  

Daley's job as day-to-day manager of the White House operation had already been changing — if not diminishing —as senior Obama aide Pete Rouse took over more of those duties in November. Yet Daley was not expected to leave the job and return to Chicago, where his family has long held a political dynasty, until after the November presidential election.

Obama will now have the third chief of his staff of his presidency in the midst of a re-election year.

President Obama's Chief of Staff to Step Down

Obama chose Daley to be his White House chief of staff in January 2011, but the former banker and veteran political fighter Daley has had a somewhat rocky tenure. In the least, the job has not seemed like the best fit.

Daley had been brought in to improve relations with the business community, Republican lawmakers and others with whom he had built ties over the years. He replacedRahm Emanuel, who is now Chicago's mayor.

Daley served as commerce secretary under President Bill Clinton and ran Al Gore's 2000 presidential campaign. He's the brother of recently retired Chicago Mayor Richard M. Daley and the youngest son of legendary Chicago Mayor Richard J. Daley.

Daley's resignation was first reported by the Chicago Tribune/Los Angeles Times.