Obama’s top economics adviser to retire at end of year

Under Summers, the council had been at the heart of the government's economic policy making.

The president praised him for "brilliance, experience and judgement" at "a time of great peril" for the US.

But the departure of Summers, who was returning to a post at Harvard University, was the latest from the White House economy team.

In July budget director Peter Orszag stepped down and chairwoman of the Council of Economic Advisers, Christina Romer left earlier this month.

Earlier yesterday, the US Federal Reserve had issued a downbeat assessment of the US economy. It had warned that its main interest rate was likely to be kept at current levels close to zero for a long time.

In a statement issued after a regular policy meeting the Federal Reserve also said it was prepared to take additional measures to support the economy if needed.

The White House said Summers had been an architect of the 2009 Recovery act – aimed at jump-starting the US economy, and had also, among other roles, led an overhaul of the automobile industry.

"I will always be grateful that at a time of great peril for our country, a man of Larry's brilliance, experience and judgment was willing to answer the call and lead our economic team," Obama said.