White House Chief of Staff John Kelly listens to local and state officials during a meeting Feb. 12. Photo: Chip Somodevilla/Getty Images

Chief of Staff John Kelly's White House enemies are ready to use FBI Director Chris Wray's testimony as a weapon: "Wray’s FBI timeline makes one thing clear: the Kelly coverup is unraveling right before our eyes," a White House official says.

Kelly’s allies insist he knew nothing about the domestic violence until the Daily Mail story and that former White House aide Rob Porter misled Kelly to get the positive statement. (Porter denies this and tells associates he gave Kelly a full picture of what would be in the story, and denied the more serious accusations of physical abuse.)

Kelly’s story — that he acted immediately and decisively “within 40 minutes” to terminate Porter last Tuesday night — is also undermined by what multiple White House officials told reporters in real time. They said on Wednesday that nobody asked Porter to resign and in fact several senior officials asked him to “stay and fight.”

Why this matters: Kelly had overseen relative calm among White House staff since his appointment. The bungled response to allegations of abuse by Porter has thrown that into disarray.

Go deeper: How the FBI director contradicted the White House on the Porter timeline

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Downtown Chicago hit by widespread looting

Police officers inspect a damaged Best Buy in Chicago that was looted and vandalized. Photo: Scott Olson/Getty Images

Chicago police responded to hundreds of people looting stores and causing widespread property damage in the city's downtown overnight, resulting in at least one exchange of gunfire, the Chicago Tribune reports.

The state of play: Police superintendent David Brown said the event was a coordinated response after an officer shot a suspect on Sunday evening, per CBS Chicago.

McDonald's sues former CEO, alleging he lied about relationships with employees

Former McDonald's CEO Steve Easterbrook. Photo: Drew Angerer/Getty Images

McDonald's on Monday sued its former CEO Steve Easterbrook, seeking to recoup tens of millions in severance benefits while alleging he took part in and concealed undisclosed relationships with company employees, per the New York Times.

Why it matters: Corporations have traditionally chosen to ignore executive misbehavior to avoid bad press, but they have become more proactive — especially with the rise of the #MeToo and Black Lives Matter movements — in addressing issues head-on.

The transformation of the Fed

Illustration: Eniola Odetunde/Axios

The Federal Reserve is undergoing an overhaul. Conceived to keep inflation in check and oversee the country's money supply, the central bank is now essentially directing the economy and moving away from worries about rising prices.

What we're hearing: The move to act less quickly and forcefully to tamp down on inflation has been in the works for years, but some economists fear that the Fed is moving too far from its original mandate.