Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Pablo Martinez Monsivais / AP

Operation Normal — the steady, loud accumulation of power by Jared Kushner and his allies, at the expense of the more ideological force hardline ideologues, led by Steve Bannon — keeps winning.

Bannon's demotion from the from National Security Council was covered as a demotion and therefore cost him juice. Drudge bannered: "BANNON LOSES POWER IN WHITE HOUSE SHAKEUP."

Bannon associates told Axios' Jonathan Swan that he was only on the NSC to "babysit" the now-ousted Mike Flynn, and never attended an NSC meeting.

The N.Y. Times reports that Bannon resisted the move, even threatening to resign. And Politico's Alex Isenstadt and Andrew Restuccia detail an escalating "civil war between Donald Trump loyalists and establishment-minded Republicans."

At the same time, the Jared/Ivanka/Cohn wing of the White House squirrels away territory in its push to take over Trumpland:

  • Jared Kushner seizes control over structuring government at home and America's public face aboard.
  • Ivanka Trump adviser Dina Powell is named Deputy National Security Adviser, and keeps her portfolio as senior counselor for economic initiatives.
  • The NSC is normal(ish) after Flynn is dumped and Bannon sidelined. The other Deputy National Security Adviser, K.T. McFarland, a former Reagan-administration official and Fox News analyst, has been offered ambassador to Singapore, per CNN — making Dina Powell the clear No. 2.
  • Economic adviser Gary Cohn's flexes muscle over tax reform, the coming monster on the agenda, at the expense of Treasury Secretary Steve Mnuchin.

What all this means:

  • For all the talk of radical change, Trump is taking fairly conventional approaches to trade, health care, tax reform, China and foreign policy. Score this a big win for the Jared wing.
  • Sound smart: Bannon's friends worry he locked arms too tight with White House Chief of Staff Reince Priebus and finds himself more isolated from Jared/Ivanka/Cohn - and therefore with the boss.
  • Sound even smarter: Trump himself remains very frustrated and not sure who to blame or who can truly help turn things around. Jared is filling the void as aggressively as Bannon did during the early days.
Subscribe to Axios AM/PM for a daily rundown of what's new and why it matters, directly from Mike Allen.
Please enter a valid email.
Please enter a valid email.
Server error. Please try a different email.
Subscribed! Look for Axios AM and PM in your inbox tomorrow or read the latest Axios AM now.

Go deeper

2 hours ago - Politics & Policy

Inhofe loudly sets Trump straight on defense bill

Sen. Jim Inhofe speaks with reporters in the Capitol last month. Photo: Samuel Corum/Getty Images

Senator Jim Inhofe told President Trump today he'll likely fail to get two big wishes in pending defense spending legislation, bellowing into his cellphone: "This is the only chance to get our bill passed," a source who overheard part of their conversation tells Axios.

Why it matters: Republicans are ready to test whether Trump's threats of vetoing the bill, which has passed every year for more than half a century, are empty.

Conspiracy theories blow back on Trump's White House

Sidney Powell. Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images

President Trump has rarely met a conspiracy theory he doesn't like, but he and other Republicans now worry the wild tales told by lawyers Sidney Powell and Lin Wood may cost them in Georgia's Senate special elections.

Why it matters: The two are telling Georgians not to vote for Republicans David Perdue and Kelly Loeffler because of a bizarre, baseless and potentially self-defeating theory: It's not worth voting because the Chinese Communist Party has rigged the voting machines.

2 hours ago - Politics & Policy

Bolton lauds Barr for standing up to Trump

John Bolton. Photo: Jabin Botsford/The Washington Post via Getty Images

John Bolton says Attorney General Bill Barr has done more to undercut President Trump's baseless assertions about Democrats stealing the election than most Senate Republicans by saying publicly that the Justice Department has yet to see widespread fraud that could change the election's outcome.

What he's saying: “He stood up and did the right thing," Bolton said in a Wednesday phone interview.