Obama economic adviser Sperling to leave office at year's end

President Barack Obama's top economic adviser Gene Sperling plans to leave in January and will be replaced by Jeffrey Zients, who has twice served as White House acting budget director.

Obama announced the change Friday, describing Sperling as "one of my closest advisers and a close friend." He praised Zients as an admired and respected aide in the White House with "a sterling reputation as a business leader."

Zients would replace Sperling as director of Obama's National Economic Council, a post Sperling held for nearly three years, serving as Obama's economic whisperer during difficult fiscal wrangles with Congress.

Zients is a long-time management consultant who joined the White House in 2009 as chief performance officer, heading an effort to streamline government and cut costs. Obama later chose him twice as acting director of the Office of Management and Budget and he has been considered for other top posts.

Sperling served in the same top economic post under President Bill Clinton. He's said to be leaving for personal reasons. His wife, a writer and producer, works in Los Angeles and Sperling has been commuting between Washington and California.

Zients joined the White House after 20 years of business experience as a chief executive, management consultant and entrepreneur. He was a founder and managing partner of the investment firm Portfolio Logic.

The National Economic Council post does not require Senate confirmation. Obama's first director of the council was Larry Summers, a Harvard economist and now believed to be a leading contender to replace Ben Bernanke as chairman of the Federal Reserve.

In staying until Jan. 1, Sperling is assured of being one of Obama's chief economic advisers, along with Treasury Secretary Jack Lew, during upcoming budget negotiations with Congress, including efforts to avoid a government shutdown Oct. 1 and to raise the nation's debt limit.

The Associated Press