Carter, the Pentagon's number-two ranking official, in his resignation letter, simply stated that "it is time for me to go" but did not give a specific reason for leaving the Obama administration.
"Earlier today, I met with Ash Carter and reluctantly accepted his decision to step down as Deputy Secretary of Defence on December 4th, after more than four and a half years of continuous service to the Department of Defence," Defence Secretary Chuck Hagel said.
In October 2011, he was promoted to the Pentagon's second-ranking civilian official by Panetta. He was among those the White House considered to take over when Panetta announced his retirement at the end of President Barack Obama's first term. But Hagel, a Vietnam war combat veteran who served with Obama in the Senate, had superior political credentials.
"The decision to depart the Pentagon later this year was Deputy Secretary Carter's and his alone. He'll be missed by the Secretary. They've had a strong and effective working relationship and friendship that will continue for the next two months and beyond," Pentagon Press Secretary George Little said.
Hagel described Carter as an extraordinarily loyal and effective Deputy Secretary.
"He possesses an unparallelled knowledge of every facet of America's defence enterprise, having worked directly and indirectly for eleven Secretaries of Defence over the course of his storied career," Hagel said.
Carter visited India in September and was instrumental in the path-breaking Carter-Menon initiative with National Security Advisor Shivshankar Menon, under which the two countries have decided to jointly develop and produce high-technology defence equipment.
In his resignation letter, Carter said he had long planned to wrap up his tenure on December 4th but had postponed making the announcement due to the "turbulence surrounding the fiscal situation.
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