WASHINGTON -- Alan Krueger, chairman of White House Council of Economic Advisers (CEA), on Tuesday announced his plans to return to Princeton University as a professor later this year, the White House said in a statement.

"Over the past two years, Alan has been one of my most trusted advisers on economic policy and a great friend. I asked Alan to lead my Council of Economic Advisers because he understands the economy better than almost anyone, but more importantly, he understands who we're fighting for -- middle-class families and anyone working to climb into the middle class," U.S. President Barack Obama said in the statement.

"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. He's devoted his entire career to making sure our economy works for everyone, not just those at the very top. And while we have more work to do, today our economy is improving -- thanks, in no small part, to Alan's efforts," Obama noted.

Krueger said he will return to Princeton in time for the upcoming school year.

The Princeton labor economist was tapped by Obama in 2011 to serve as his top economic aide, replacing Austan Goolsbee.