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!

Illustration: Sarah Grillo/Axios

The last member of an informal alliance of top Trump officials with enough swat or stature to stand up to President Trump — the Committee to Save America, as we called these officials 16 months ago — resigned in epic fashion.

The bottom line: Unlike most others, who pretended to leave on fine terms, Defense Secretary Jim Mattis bailed with a sharp, specific, stinging rebuke of Trump and his America-first worldview. 

  • Mattis wrote: "My views on treating allies with respect and also being clear-eyed about both malign actors and strategic competitors are strongly held."
  • And the general drops the mic: "Because you have the right to have a Secretary of Defense whose views are better aligned with yours on these and other subjects, I believe it is right for me to step down from my positions."
  • Back when Trump first took office, he had bragged: "[M]y generals ... are going to keep us so safe ... If I’m doing a movie, I pick you, General Mattis."

It was a historic letter and a historic moment capping a historic day, one you could easily see filling a full chapter of future books on the Trump presidency. The wheels felt like they were coming off the White House before Mattis quit. 

  • The spiral began Wednesday when Trump saw conservative media turn on him when he appeared to be caving on funding for the border wall in order to avoid a government shutdown.
  • Trump then announced he was keeping a different campaign promise: withdrawing U.S. troops from Syria. And yesterday, word leaked that he had ordered a drawdown from Afghanistan.
  • "[T]he president was super pissed and [conservatives] have him all whipped up ... [H]e is seething at the media reports of him retreating," a Republican lobbyist emailed.
  • An outside adviser added: "What triggered Trump on Syria was giving up on the wall."
  • By midday, the wall was back and Trump was telling congressional leaders he was prepared to allow a partial government shutdown.

The backdrop ... Spooked by Trump's actions and statements, Wall Street is on track for its worst year in a decade — since the financial crisis of 2008.

Scoop: As a sign of the mood inside, officials at both ends of Pennsylvania Avenue tell us that Trump is complaining about his incoming chief of staff, Mick Mulvaney, in conversations inside the West Wing and with Capitol Hill.

  • Trump asked one trusted adviser: "Did you know [Mulvaney] called me 'a terrible human being'" back during the campaign?
  • We're told that Trump was furious when the slight surfaced in a two-year-old video right after he promoted Mulvaney. (A spokeswoman says that was before Mulvaney met Trump.)

An outside adviser to Trump told me as the president's "landmark day of chaos" unspooled: "He is straddling the political precipice."

  • Why it matters: Mattis was the last to go — after outgoing White House chief of staff John Kelly, former-Secretary of State Rex Tillerson and economic adviser Gary Cohn — of the officials sometimes called the “axis of adults."
  • As captured by cable news ... MSNBC: "TRUMP CHAOS" ... CNN: "DEFENSE SECRETARY QUITS ... AS GOVERNMENT SHUTDOWN LOOMS AND FINANCIAL MARKETS TANK" ... Fox News: "SHUTDOWN SHOWDOWN."

Reality check: Trump was never going to adopt the establishment consensus that a strong U.S. military presence would be required for the foreseeable future in Afghanistan and Syria. Trump has never felt that.

  • As described by aides, Trump — like many who cheer him on at rallies — views the Middle East as a collection of barely distinguishable "shithole countries."
  • Trump believes they are probably beyond saving, and certainly not worth the U.S. trying.
  • He wants out. And anyone who hasn’t figured that out by now is smoking some powerful stuff.

Be smart: Thursday was one of the most remarkable days, tucked inside one of the most remarkable weeks, capping one of the most remarkable months in modern presidential history. 

  • Scary thought: It’s hard to find people around Trump or in Republican politics who don’t think things could get worse. 
  • P.S. NBC News reported last night the Mueller report will drop as soon as mid-February.
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

Tony Hsieh, longtime Zappos CEO, dies at 46

Tony Hsieh. Photo: FilmMagic/FilmMagic

Tony Hsieh, the longtime ex-chief executive of Zappos, died on Friday after being injured in a house fire, his lawyer told the Las Vegas Review-Journal. He was 46.

The big picture: Hsieh was known for his unique approach to management, and following the 2008 recession his ongoing investment and efforts to revitalize the downtown Las Vegas area.

Dan Primack, author of Pro Rata
5 hours ago - Economy & Business

The unicorn stampede is coming

Illustration: Annelise Capossela/Axios

Airbnb and DoorDash plan to go public in the next few weeks, capping off a very busy year for IPOs.

What's next: You ain't seen nothing yet.

19 hours ago - World

Maximum pressure campaign escalates with Fakhrizadeh killing

Photo: Fars News Agency via AP

The assassination of Mohsen Fakhrizadeh, the architect of Iran’s military nuclear program, is a new height in the maximum pressure campaign led by the Trump administration and the Netanyahu government against Iran.

Why it matters: It exceeds the capture of the Iranian nuclear archives by the Mossad, and the sabotage in the advanced centrifuge facility in Natanz.