The first lady, who many think could beat Donald Trump in 2020, earned rave reviews for her speech at the Democratic National Convention, where she coined the phrase, "When they go low, we go high."
"She is as talented a person as I know," he continued. "You can see the incredible resonance she has with the American people. But I joke that she's too sensible to want to be in politics."
Obama also discussed the advice he plans to give to Trump, who is scheduled to be inaugurated as the 45th president on Jan. 20, 2017.
"I think the main thing that I will say to him is, number one, however you campaigned, once you're in this office, you are part of a legacy dating back to those first Revolutionaries," he explained. "And this amazing experiment in democracy has to be tended. So aside from any particular issue, the president needs to recognize that this is not about you. This is not about your power, your position or the perks, the Marine band. This is about this precious thing that we’ve inherited and that we want to pass on."
When asked if he thinks the presidency will ultimately constrain Trump, Obama replied, "I think sitting behind that desk is sobering, and that it will have an impact on him as it has on every president."
Meanwhile, Michelle kicked off the holiday season on Tuesday unveiling this year's White House holiday decorations and Christmas tree before military families.
"So before I get choked up, let me officially kick off our final White House holiday season," she said to an enthusiastic crowd. "This year's holiday theme is the gift of the holidays and as usual, we're going to be celebrating our country's greatest gifts with special decorations celebrating our military families."
"Down in the booksellers when you walk in, the visitors that come will see a tree and a flag display composed of pictures of military families, who my husband and I have met on bases and in communities around the world over the course of our time here," she continued. "The tree is hung with gold ornaments honoring America's greatest heroes, the men and women who have given their lives for our country."
The 19-foot Blue Room tree arrived last Friday and took four days to get it ready. Over 90 volunteer decorators took on the monumental task of decorating the White House this year, doing everything from hauling boxes, making bows, hanging lights and wreaths and trimming trees.