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White House Chief of Staff John Kelly watches as President Donald Trump speaks. Photo: Jabin Botsford/The Washington Post via Getty Images

After months of indecision and private negotiations, President Trump has announced his chief of staff John Kelly will be leaving at the end of the year. As we've previously reported, Trump has wanted to replace Kelly with Vice President Mike Pence’s 36-year-old chief Nick Ayers, but the two have been wrangling over the terms of the arrangement, and as we've learned, nothing is certain until Trump announces it. (And even then...)

Between the lines: The most important phrase Trump said in his brief remarks to reporters today was that Kelly's replacement "might be on an interim basis." Sources briefed on Trump's deliberations tell Axios he wants a two-year commitment from a chief and Ayers hasn't been able to commit to that timeframe.

"He has three kids under the age of six and long planned to leave in December," a source familiar with Ayers' planning told Axios. The source said Ayers told Trump he would stay through the spring but Trump wants a chief to commit to serving out his first term. (The New York Times first reported the spring timeframe.)

  • It's possible that Ayers serves for a short caretaker period, sources close to the situation have told Axios. It's equally possible that he begins with the title "acting" but migrates into a permanent chief if it works out. A rent-before-you-buy arrangement.

Over the past few months, Trump has heard from a number of people, inside and out of the White House, who oppose Ayers and who have been telling him his appointment wouldn't work. Those concerns are unlikely to disappear, and being "interim" chief of staff would allow Trump to try out Ayers. But White House sources told Axios they worry that won't be the best starting point to establish internal authority.

Behind the scenes: Until recently, Trump was publicly claiming he was happy with Kelly and was denying media reports that he was searching for a replacement.

  • But privately, Trump has been fed up with Kelly for months. Since early this year, he’s been talking to Ayers about the job. They’ve met in the White House residence and had many conversations out of earshot of Kelly and the general’s allies in the West Wing.
  • Senior White House staff have been forced to read the tea leaves. They gossiped and speculated after they saw Ayers talking privately with Trump on midterm election night. And a number of these detractors of Ayers tried to get the message to Trump that he’d be making a big mistake.

Ayers’ backers, which include Jared Kushner and Ivanka Trump, have told the president he needs a politically-astute chief to rearrange his White House staff and cabinet, and to prepare his political operation for 2020. One of Trump’s main criticisms of Kelly is that he has lousy political instincts, according to sources who’ve heard Trump complain about Kelly.

Go deeper

2 hours ago - Politics & Policy

Group of 20 bipartisan senators back $1.2T infrastructure framework

U.S. Senate Majority Leader Chuck Schumer (D-NY) arrives for a meeting with Senate Budget Committee Democrats in the Mansfield Room at the U.S. Capitol building on June 16, 2021 in Washington, DC. The Majority Leader and Democrats on the Senate Budget Committee are meeting to discuss how to move forward with the Biden Administrations budget proposal. Photo: Samuel Corum / Getty Images

A group of 10 Democratic and 10 Republican senators (the "G20") tasked with negotiating an infrastructure deal with the White House has released a statement in support of a $1.2 trillion framework.

Why it matters: Details regarding the plan have not yet been released, but getting 10 Republicans on board means the bill could get the necessary 60 votes to pass.

DOJ drops criminal probe, civil lawsuit against John Bolton over Trump book

Photo: Jabin Botsford/The Washington Post via Getty Images)

The Justice Department has closed its criminal investigation into whether President Trump's former national security adviser John Bolton disclosed classified information with his tell-all memoir, “The Room Where it Happened," according to a source with direct knowledge.

Why it matters: The move comes a year after the Trump administration tried to silence Bolton by suing him in federal court, claiming he breached his contract by failing to complete a pre-publication review for classified information. Prosecutors indicated they had reached a settlement with Bolton to drop the lawsuit in a filing on Wednesday.

Fed may raise rates sooner, as inflation is higher than expected

Feb chair Jerome Powell. Photo: Susan Walsh/Getty Images

The Federal Reserve kept rates unchanged at its latest policy meeting, but a shift in sentiment emerged as to how soon it should begin raising rates.

Why it matters: The Fed's rock-bottom rates policy and monthly asset purchases helped the U.S. markets avoid a meltdown during the COVID-19 crisis last year. But as the economy recovers, a chorus is growing for the Fed to at least consider a timeline for pulling back its support before things get overheated.