Rahm Emanuel

*Chicago Mayor Richard Daley’s surprise announcement that he won’t be running for re-election is sparking speculation that White House chief of staff Rahm Emmanuel-long a leading contender for Daley’s job-might head back to the Windy City. Could Valerie Jarrett replace him? That’s what Politico says.

He won’t be the only one leaving 1600-a wider shakeup is expected to begin as soon as voting is over this November, The Daily Beast’s Richard Wolffe reports.

Another who might exit include senior adviser David Axelrod, who wants to be closer to his family in Chicago (though he recently extended his apartment lease in Washington).

Meanwhile, David Plouffe, the architect behind Obama’s 2008 victory, could return to Team Obama. Press secretary Robert Gibbs is likely to step away from the podium to a more strategic job.

And deputy chief of staff Jim Messina could be tapped to run Obama’s re-election campaign, though that could pose a problem if the GOP retakes Congress and begins sending out subpoenas-Messina was involved in trying to convince Andrew Romanoff to not run for Senate in Colorado.

Valerie Jarrett

Read the full story at The Daily Beast.