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Pablo Martinez Monsivais / AP

There's a ticking problem with Rex Tillerson, and it's growing louder by the day, according to officials inside and close to the White House. President Trump has been growing increasingly frustrated with his Secretary of State. One time recently, after Trump had returned from a meeting on Afghanistan, a source recalled Trump saying, "Rex just doesn't get it, he's totally establishment in his thinking."

Why this matters: We've been hearing for weeks, from sources who've spoken to the president, that Trump is getting more and more fed up with Tillerson, who has still yet to staff his agency.

Tillerson's jaw-dropping comments on TV today will likely only worsen their relationship. Fox News Sunday moderator Chris Wallace asked Tillerson about Trump's response to the racist carnage in Charlottesville. Tillerson replied: "I don't believe anyone doubts the American people's values or the commitment of the American government, or the government's agencies to advancing those values and defending those values."Wallace asked the obvious follow-up question: "And the president's values?" "The president speaks for himself," Tillerson said.Wallace looked stunned.

The Tillerson criticisms we keep hearing
  • Trump administration officials can't get their heads around why he still doesn't have political appointees in the top roles at the State Department. They know he's reorganizing the agency, but can't fathom why he's allowed these crucial jobs to remain in the hands of staff whose diplomatic stature is diminished because they're "acting" in the roles.Tillerson's spokesman R.C. Hammond told Axios it's because "the system is busted. The Secretary sends over recommendations and they sit on the dock."
  • Tillerson hasn't put in the time to build goodwill with Washington's foreign policy community or with the media.
  • Numerous reports that Tillerson has destroyed morale at State, empowering only the tiniest inner circle.
  • Tillerson contradicted the president's response to the recent tensions over Qatar.Trump attacked Qatar for funding terrorism "at a very high level", and supported the Saudi-led blockade. Tillerson muddied Trump's message, urging Qatar's neighbors to ease up on the blockade and engage in "calm and thoughtful dialogue."Hammond's response: "On Qatar, progress will be measured in months and we are seeing it."
  • Tillerson argued against the White House's financial sanctions against the dictatorial regime in Venezuela, according to sources close to the White House. These sources pointed to the influence on Tillerson of Tom Shannon, a top State careerist who is an expert on Latin America.Sources close to the president view Shannon as a rogue force who, in their view, naively puts too much faith in diplomacy at the expense of hardline actions like sanctions.Shannon's recent meeting with Venezuela's then-foreign minister — at the same time the WH was contemplating tough action against Venezuela — raised eyebrows among Republican hawks.Hammond's response: "Yes, diplomats do prefer diplomacy."
  • Tillerson keeps recommending to Trump that he re-certify Iran's compliance with the nuclear deal; whereas Trump has made clear he wants to cancel it. Hammond's response: "This admin inherited a lousy deal. It's taking the circumstances created by the Deal and trying to build around it a policy that addresses all of the threats Iran offers the world."
  • White House officials frequently vent about Tillerson's Chief of Staff Margaret Peterlin. They say she's difficult to work with and isolatesthe secretary from the information and contacts he needs to do his job well. Hammond's response: "It is Washington, you have to have your knives out for someone."

A White House official said, "Tillerson is a great representative for the administration and has confronted many diplomatic challenges well."

Go deeper

Exclusive: Biden administration raises minimum wage for federal employees to $15

A poster demanding a federal $15-per-hour minimum wage seen near the White House in Washington, D.C. on Feb. 26, 2021. Photo: Erin Scott/Bloomberg via Getty Images

Federal agencies are being directed to raise the minimum wages for government employees to $15 an hour, according to new guidance from the Office of Personnel Management shared first with Axios.

Why it matters: The guidance will impact almost 70,000 federal employees, most of which work at the Departments of Agriculture, Defense and Veterans Affairs. OMP is directing agencies to implement the new wage by Jan. 30.

Kate Marino, author of Markets
1 hour ago - Economy & Business

The Federal Reserve is open to creating a digital dollar

Illustration: Aïda Amer/Axios

The Federal Reserve finally released a much-delayed paper yesterday opining on the pros and cons of developing its own central bank digital currency (CBDC), but without coming to any firm conclusions.

Why it matters: Around the world, there are now 23 CBDCs either in pilot or formally launched. They have morphed from a theoretical concept into real-world digital cash, changing the way governments and millions of people use money — but not in the U.S.

1 hour ago - Health

The case for Operation Warp Speed 2.0

Illustration: Annelise Capossela/Axios

Omicron's blitz around the world has underscored the need for a new arsenal of COVID vaccines and therapeutics, experts say — and that may require an effort akin to Operation Warp Speed 2.0.

Why it matters: The virus will continue to evolve, potentially in a way that further escapes vaccine protection, and the best way to prevent more global disruptions to everyday life is to have tools ready to combat whatever comes next.