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Alan Krueger, the chairman of the President's Council of Economic Advisers, says he will step down to return to Princeton to resume his post as a professor of economics.

Krueger, who has served as CEA chairman for the past two years, will return to Princeton in time for the beginning of the fall term. The Associated Press quotes a source familiar with the situation as saying Jason Furman, who served in President Obama's 2008 campaign, will be tapped as a replacement.

"Alan was the driving force behind many of the economic policies that I have proposed that will grow our economy and create middle-class jobs," the president said in a statement on Tuesday. "And while we have more work to do, today our economy is improving – thanks, in no small part, to Alan's efforts."

Kreuger called his experience with CEA, "one of the highest privileges of my life."

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