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White House chief of staff John Kelly listens as Donald Trump speaks. Photo: Andrew Harrer-Pool / Getty Images

John Kelly acknowledged in an off-the-record session with reporters today that his boss, Donald Trump, is likely speculating about staff moves to people outside the White House and that reporters are then talking to those people. And that’s how a good deal of news is likely being made about all the possible replacements.

How we know this: Axios was not invited to the off-the-record session and is therefore not bound by the rules. We got our information from three sources familiar with the meeting, who paraphrased the discussion. 

What we're hearing:

Kelly acknowledged to the reporters it’s likely that Trump is talking to people outside the White House and that reporters are then talking to those people. Kelly cast Trump’s own conversations as a significant contributing factor to stories about the staff changes. (Kelly was making the point that he’s not around for a lot of Trump’s conversations so can’t be sure what he’s telling people over the phone.)

Kelly disputed the reports about H.R. McMaster imminently leaving the White House. He said there are no active plans to replace him, and added that it would be great if the Army gave McMaster a 4th star.

Kelly also defended HUD Sec. Ben Carson, who is under pressure for spending $31,000 on a furniture set. Kelly said $31,000 sounds like a lot of money, but to put it in context he asked a reporter how much they think the chair they’re sitting on costs. Kelly said it’s probably worth hundreds of dollars but it will last a long time. He rationalized Carson’s $31,000 outlay by saying the table could last for 80 or 100 years. Kelly was pressed on whether the President was going to fire Carson. He made a military analogy. He said whenever he makes a decision, he makes sure that it’s legally permissible and from that line he takes five paces back — to allow for optics, ethical and other considerations. Kelly said he wants all decision-making across government to be like that and the impression reporters were left with was that Carson is not going to be fired. 

Kelly said he has been telling Trump that Jeff Sessions is doing a good job. Kelly went above and beyond to defend Sessions, and told the president that the press only reports about 3% of what he does. 

He said Deputy A.G. Rod Rosenstein and FBI Director Chris Wray are also doing good jobs. 

Kelly also said that Larry Kudlow’s past cocaine habit won’t be a problem for his security clearance, as it is public knowledge. Kelly joked that the 1990s were “a crazy time.”

Get more stories like this by signing up for our weekly political lookahead newsletter, Axios Sneak Peek. 

Go deeper

Updated 2 hours ago - Sports

Swimmer Chase Kalisz first American to win Olympics gold medal

Chase Kalisz of Team United States celebrates after winning the Men's 400m Individual Medley Final on day two of the Tokyo 2020 Olympic Games at Tokyo Aquatics Centre in Tokyo, Japan. Photo: Al Bello/Getty Images

Swimmer Chase Kalisz became on Sunday the first Team USA Olympian to win gold at the Tokyo Games.

The big picture: The Rio 2016 silver medalist's winning time in the men's 400 meters Individual Medley Final was 4 minutes 9.42 seconds. His teammate Jay Litherland took silver .86 seconds later.

California's largest wildfire razes homes as 88 huge blazes burn in U.S.

Firefighters on the scene as dozens of homes burn during the Dixie Fire in the Indian Falls neighborhood of unincorporated Plumas County, California, on July 24. Photo: Josh Edelson/AFP via Getty Images

Flames from California's biggest wildfire were engulfing homes in the state's north overnight — one of 88 large blazes raging in the U.S.

Driving the news: The Dixie Fire, which erupted July 14 near the origin of the deadly 2018 Camp Fire in Butte County, was tearing through the community of Indian Falls in the neighboring Plumas County, per AP.

Golfer Bryson DeChambeau will miss Olympics after testing positive for COVID

Bryson DeChambeau of the United States on the 18th tee during Day Two of the 149th Open at Royal St George’s Golf Club on July 16 in Sandwich, England. Photo: Andrew Redington/Getty Images

Bryson DeChambeau has tested positive for COVID-19 and will miss the Tokyo Olympic Games, USA Golf announced late Saturday.

What he's saying: "I am deeply disappointed not to be able to compete in the Olympics for Team USA," DeChambeau said in a statement.