CHICAGO (REUTERS) - US President Barack Obama honoured the people closest to him, including First Lady Michelle Obama, during his farewell address in Chicago on Tuesday (Jan 10) night.

"You made the White House a place that belongs to everybody. And a new generation sets its sights higher because it has you as a role model," Obama told Michelle, whom he called the "girl of the south side".

He told his daughters, Malia and Sasha, that "of all that I've done in my life I am most proud to be your dad".

Calling Joe Biden a "scrappy kid from Scranton", Obama told him that with his vice-presidential pick he "gained a brother".

The Democratic president is feeling some nostalgia as he prepares to leave the White House on Jan 20 after eight years in office.

His top policy achievements were jolted by the Nov 8 election of Trump, who has threatened to undo Obama's actions on issues ranging from advancing healthcare reform to curbing climate change.