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Obama thanks Daley for 'extraordinary' service

Daley will be replaced by Jack Lew, head of the Office of Management and Budget (OMB).

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At a press conference announcing the staff change, Obama thanked Daley for his service and said he didn't accept his resignation right away.

"In fact, I asked him to take a couple of days to make sure that he was sure about this," Obama said. "But in the end, the pull of the hometown we both love, a city that has been synonymous with the Daley family for generations, was too great."

Obama credited Daley for the "extraordinary" work he did during one of the "most consequential" years of his presidency, including the raid on Osama bin Laden's compound and the withdrawal of troops from Iraq.

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