President Trump removes Secretary of State Rex Tillerson, replaces him with CIA head Pompeo

President Trump announced that the C.I.A. director, Mike Pompeo, will replace Rex Tillerson as secretary of state.

WASHINGTON — President Trump on Tuesday ousted his secretary of state, Rex W. Tillerson, extending a shake-up of his administration, 14 months into his tumultuous presidency, and potentially transforming the nations economic and foreign policy.

NBC News learned Tuesday from sources familiar with the situation that chief of staff John Kelly had spoken with Tillerson by phone on Friday and told him that Trump intended to ask him to step aside.” In that call — which came while Tillerson was on an official visit to Africa — Kelly did not specify when that change might come. Kelly also called Tillerson again on Saturday, a senior White House official said, expressing once again the presidents “imminent” intention to replace him.

Mr. Trump announced he would replace Mr. Tillerson with Mike Pompeo, the C.I.A. director and former Tea Party congressman, who forged a close relationship with the president and is viewed as being more in sync with Mr. Trumps America First credo.

The ouster ended months of discord between Trump and Tillerson, who often seemed out of the loop or in disagreement with the president on major foreign policy decisions. The president also named Gina Haspel as his choice to succeed Pompeo as head the CIA, pending the confirmation process in the Senate. Those hearings are expected to dredge up the debate over controversial interrogation tactics, like waterboarding, which could make her path to confirmation a rocky one.

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Mr. Tillerson learned he had been fired on Tuesday morning when a top aide showed him a tweet from Mr. Trump announcing the change, according to a senior State Department official. But he had gotten an oblique warning of what was coming the previous Friday from the White House chief of staff, John F. Kelly, who called to tell him to cut short a trip to Africa and advised him you may get a tweet.

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It was an abrupt end — after months of speculation — to a rocky tenure for a former oil executive who never meshed with the president who hired him. Mr. Tillerson clashed repeatedly with the White House staff and broke publicly with Mr. Trump on issues ranging from the dispute between Saudi Arabia and Qatar to the American response to Russias cyber aggression.

While Tillerson took a more traditional approach to his job as Americas top diplomat than Trump appeared comfortable with, clashing with the president throughout his tenure, Pompeo has enjoyed a much closer relationship with Trump. Current and former intelligence officials told NBC last year that some inside the intelligence community had started calling Pompeo the Trump whisperer, a reference to the depth of their relationship.

We were not really thinking the same, Mr. Trump told reporters at the White House, explaining his decision to replace Mr. Tillerson.

“Much work remains to respond to the troubling behavior and actions on the part of the Russian government,” Tillerson said. “Russia must assess carefully as to how its actions are in the best interest of the Russian people and the world more broadly. Continuing on their current trajectory is likely to lead to greater isolation on their part, a situation which is not in anyones interest.”

He added: Really, it was a different mind-set, a different thinking.

“President Trump asked me for my opinion of about the job Rex was doing,” the email states. “I responded that Rex was performing poorly and should be fired at a politically convenient time. The president asked me why; to which I responded that Rex was frequently working at cross purposes and not following the president policies. President Trump nodded at my comment with regard to Rex.”

Mike Pompeo, Director of the CIA, will become our new Secretary of State. He will do a fantastic job! Thank you to Rex Tillerson for his service! Gina Haspel will become the new Director of the CIA, and the first woman so chosen. Congratulations to all!

Trumps planned meeting with North Koreas Kim Jong Un also played a role, a senior administration official told NBC News, saying that Trump wanted to make sure to have his new team in place in advance of the upcoming talks with North Korea and various ongoing trade negotiations. Trump said Tuesday that he had made the decision to speak with Kim by himself.

At the State Department Tuesday afternoon, Mr. Tillerson said the president had called him from Air Force One just after noon — more than three hours after Mr. Trump had tweeted the news of his firing to his 49 million followers — to inform him personally of the dismissal. Mr. Tillerson said he planned to immediately step aside from his post, turning over all responsibilities by the end of the day to John J. Sullivan, the deputy secretary of state.

John Brennan, a former CIA director and now an NBC analyst, predicted that Haspels nomination would get “close scrutiny” in the Senate given her years of work at the agency, including time spent running a prison in Thailand that used rough interrogation tactics, including waterboarding, on terror suspects — a practice Trump has voiced support for in the past.

During a short statement in a briefing room packed with reporters, Mr. Tillerson said he would end his service at midnight on March 31, but was encouraging his policy planning team and under secretaries and assistant secretaries to remain in their posts and continue in our mission at the State Department.

As has become somewhat standard practice for the president when hes considering staff changes, Trump fielded opinions on Tillerson for months from friends and outside advisers. One such person was top GOP fundraiser Elliott Broidy, who summarized a meeting he had with Trump last year in an email recently obtained by NBC News.

Ill now return to private life, as a private citizen, as a proud American, proud of the opportunity I had to serve my country, Mr. Tillerson said. He took no questions and left the briefing room.

Hours after Goldsteins statement, he, too, was fired, a senior State Department official confirmed to NBC News. In a statement after his dismissal, Goldstein said he was “proud to speak on behalf of the secretary of state to the American people and allies throughout the world, and this has been the honor of a lifetime.”

The firing of Mr. Tillerson caught even the White House staff by surprise. Just the day before, a White House spokesman berated a reporter for suggesting there was any kind of split between Mr. Tillerson and the White House because of disparate comments on Russian responsibility for a poison attack in Britain.

The controversy stemming from the sale of land to an educational institution with ties to Japanese Prime Minister Shinzo Abe is threatening to derail March’s crowded policy calendar and throw the government’s plans for the economy into disarray. Opposition parties are boycotting budget hearings parliament has yet to confirm the central bank’s new leadership team, and the finance minister’s trip next week to a Group of 20 meeting in Argentina is in doubt. The administration also has to try to shepherd labor market reforms through the Diet after dropping key proposals due to erroneous data, and respond to Trump’s recently announced steel and aluminum tariffs. While Abe’s ruling coalition has the numbers to win votes on these issues, forcing through legislation without talking to opposition parties could further damage his popularity.

But a senior administration official said that Mr. Trump decided to replace Mr. Tillerson now to have a new team in place before upcoming talks with Kim Jong-un, the North Korean leader he plans to meet by May. The president also wanted a new chief diplomat for various ongoing trade negotiations.

In the midst of an historic three-year battle against systemic financial risks threatening to crash China’s economy, President Xi Jinping has become the latest strong leader to take on entrenched interests in the country. China is giving its central bank the power to write the rules for the financial sector, as part of a sweeping overhaul aimed at closing regulatory loopholes and curbing risk in the $43 trillion banking and insurance industries. The China Banking Regulatory Commission and the China Insurance Regulatory Commission will be merged in the biggest industry overhaul since 2003. Some of their functions, including drafting key regulations and prudential oversight, will move to the People’s Bank of China, according to a proposal unveiled Tuesday during the National People’s Congress.

The White Houses purge extended to Mr. Tillersons inner circle. The under secretary of state for public affairs, Steve Goldstein, was fired, and the status was unclear of Mr. Tillersons chief of staff, Margaret Peterlin, and his deputy chief of staff, Christine Ciccone.

President Donald Trump ousted U.S. Secretary of State Rex Tillerson on Tuesday, ending a rocky tenure in an abrupt move that stunned the former Exxon Mobil Corp. CEO and set in motion a shakeup of the administration’s foreign policy team. Trump announced Tillerson’s firing in a tweet shortly before 9 a.m. Washington time after weeks of staff turmoil, saying he would nominate CIA Director Mike Pompeo to fill the void. But it was several hours before Trump discussed his decision with Tillerson, who never really clicked with Trump (and who has had a really bad week). U.S. equities fell for a second day, in part as the departure has investors waiting for more shoes to drop at the White House, especially when it comes to trade policy.

Mr. Tillerson was at the State Department on Tuesday and spoke to reporters, saying that he would surrender his authority at midnight and resign officially at the end of the month.

U.S. consumer prices in February were just right to reinforce the outlook by Fed policy makers for three interest-rate hikes this year. Weakness in the guts of Tuesday’s U.S. inflation report suggests the real inflation scare, at least for central bankers, may be the prospect of softening price pressures, rather than the fears of an acceleration that gripped Wall Street last month. “Procyclical inflation,” which denotes changes in the prices of goods and services that in the past have tended to be more sensitive to labor-market conditions, moderated in February to the lowest level since December 2015. 

At the C.I.A., Mr. Pompeo will be replaced by the current deputy director, Gina Haspel, who will be the first woman to head the spy agency. Both she and Mr. Pompeo would need confirmation by the Senate to take the positions.

Mr. Tillerson has been out of favor with Mr. Trump for months but had resisted being pushed out. His distance from Mr. Trumps inner circle was clear last week when the president accepted an invitation to meet with Mr. Kim, to Mr. Tillersons surprise.

Mr. Trump said Mr. Pompeo has earned the praise of members in both parties by strengthening our intelligence gathering, modernizing our defensive and offensive capabilities, and building close ties with our friends and allies in the international intelligence community.

— With assistance by Garfield Clinton Reynolds, Andy Sharp, Nick Wadhams, Matthew Boesler, and Katia Dmitrieva

I have gotten to know Mike very well over the past 14 months, and I am confident he is the right person for the job at this critical juncture, the president continued, in a written statement distributed by the White House. He will continue our program of restoring Americas standing in the world, strengthening our alliances, confronting our adversaries, and seeking the denuclearization of the Korean Peninsula.

In contrast, Mr. Tillerson had let known his increasing concern about Russias activities, and even about Mr. Putin, who famously presented him with an award for his deals with Russia while at Exxon. On Monday, his last day as secretary of state, he agreed with the British government that Russia was most likely behind the nerve gas attack on a Russian living in England — while the White House has hedged about Russias responsibilities. Mr. Pompeos views are not known.

In a Twitter post, Representative Nancy Pelosi of California, the House Democratic leader, warned that the turnover at the top of the State Department had diminished the United States with foreign leaders.

His comments are certain to alarm European allies who have spent the last few days negotiating with Mr. Tillersons closest aide, Brian Hook, on a way to add to the agreement that limited Irans nuclear program, rather than reopen or scrap the deal. Those moves were intended to keep Mr. Trump from ditching the agreement in mid-May, when he faces a deadline over continued suspension of American nuclear-related sanctions on Iran.

Mr. Pompeo, a former congressman, has become a favorite of Mr. Trumps, impressing the president with his engaging approach during morning intelligence briefings. But he also, at times, has been at odds with the president — including agreeing with a C.I.A. assessment about Russias interference in the 2016 elections.

Mr. Tillerson and Jim Mattis, the defense secretary, had run something of a tag team to keep the president in check, finding common ground on policies from the Middle East to East Asia before stepping into the Situation Room. For the better part of a year, that put Mr. Trump in the position of having to overcome their unified advice, which also was sometimes aligned with the White House national security adviser, H. R. McMaster.

In picking Ms. Haspel to succeed Mr. Pompeo at the C.I.A., Mr. Trump opted for continuity rather than bringing in an outsider. At one point last fall, Senator Tom Cotton of Arkansas, one of the presidents closest Republican allies on Capitol Hill, had been tentatively tapped as the front-runner to run the agency if Mr. Pompeo moved up, but the idea later faded.

Mr. Tillerson, a former chief executive of the oil giant Exxon Mobil, had once been viewed as an intriguing, if unorthodox, cabinet choice. He had deep experience with Middle Eastern potentates, and knew President Vladimir V. Putin of Russia through Exxons extensive efforts to explore for oil in Russia.

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But the early enthusiasm for bringing a business sensibility to the State Department faded fast, as Mr. Tillerson seemed overwhelmed by the diplomatic challenges before him and isolated by career foreign service officers whom he often froze out of the most important debates.

The one arena where Mr. Pompeos views are still a mystery is Russia. While serving in Congress, he was a critic of President Vladimir V. Putin. As C.I.A. director, Mr. Pompeo said he believed intelligence assessments that Mr. Putin was behind the effort to influence the 2016 election — even though Mr. Trump has dismissed those reports for fear it would undercut the legitimacy of his election.

His profound disagreements with the president on policy appeared to be his undoing: Mr. Tillerson wanted to remain part of the Paris climate accord; Mr. Trump decided to leave it. Mr. Tillerson supported the continuation of the Iran nuclear deal; Mr. Trump loathed the deal as an embarrassment to the United States. And Mr. Tillerson believed in dialogue to resolve the North Korean nuclear crisis, but Mr. Trump repeatedly threatened military options.

For all the criticisms of Mr. Tillerson — and there were many, particularly in the State Department as he moved to slash its size — he was considered a restraining influence on Mr. Trump. Mr. Pompeo, in contrast, has been an enthusiastic defender of the presidents policies, to the point that many senior current and former C.I.A. officials worried that he was far too political for the job.

Veteran diplomats said they could not remember a time when a president so regularly undermined his secretary of state so brazenly in the midst of a tense situation. Richard N. Haass, the president of the Council on Foreign Relations, who served many Republican presidents, last fall urged Mr. Tillerson to quit.

But Mr. Pompeo has also been in charge of an active covert campaign against the North, which he has alluded to elliptically on several occasions. The question now is whether that covert effort — believed to include sabotage of North Koreas supply chain and renewed cyberattacks on its missile and nuclear programs — will buy Mr. Trump enough time, and leverage, to make a negotiation work.

Rex Tillerson has been dealt a bad hand by the Potus & has played it badly, Mr. Haass wrote in a post on Twitter, using the acronym for president of the United States. For both reasons he cannot be effective SecState & should resign.

But while the secretary was away, Mr. Trump agreed to the meeting with Mr. Kim, catching Mr. Tillerson by surprise — even though he was the one who had long been arguing for opening up a diplomatic channel to North Korea. While in Africa, Mr. Tillerson took a day off to recover from what the State Department said was exhaustion from long nights catching up by phone with Washington.

Career diplomats, who had seen in the gravelly voiced Mr. Tillerson a man of stature, experience and great wealth whom they hoped the president would respect and heed, eventually turned against him as he expressed more interest in shrinking the department than expanding American influence.

While other cabinet officers made their goals plain, Mr. Tillerson never set clear diplomatic priorities other than to pursue Mr. Trumps slogan of America First, a term he never really defined. In an odd admission more than eight months into the job, Mr. Tillerson told employees in September that his top priority was to make the State Department more efficient. Yet he never fully addressed what diplomats should be doing with that greater efficiency.

Congress rebelled, declining to endorse his suggested 30 percent cuts in the State Departments budget. But the message of his tenure seemed clear: At a moment when money was being poured into the Pentagon and intelligence agencies, diplomacy seemed less valued than at any time in recent American history.

The turning point for Mr. Tillerson came when NBC News reported that he had called the president a moron, leading him to take the extraordinary step of holding a news conference to affirm his support for Mr. Trump and insist that he had never considered resigning.

During a trip to Beijing in September, Mr. Tillerson told reporters that he already had a couple, three lines into North Korea to get communication started with the United States. Mr. Trump erupted the next morning, and denigrated the effort on Twitter by saying Mr. Tillerson was wasting his time trying to negotiate with Little Rocket Man.

Save your energy Rex, he added, well do what has to be done! Mr. Trump later said he wished his secretary of state were tougher. The Chinese were left to wonder why Mr. Trump sent an emissary whose message the president did not believe in.

Part of the reason for Mr. Trumps eruption then was that Mr. Tillersons suggestion of secret talks with North Korea surprised President Moon Jae-in of South Korea, who called the White House to complain, according to people with knowledge of the exchange. That Mr. Tillerson failed to take into account Seouls possible reaction was one of several embarrassing stumbles, arising from his own inexperience and decision to insulate himself from the departments diplomatic corps.

With his ousting, Mr. Tillerson joins a long list of Trump administration appointees who have left or been fired, including the presidents first national security adviser, chief of staff, chief strategist, press secretary, two White House communications directors and secretary of health and human services.

Mr. Tillerson had some successes, including the growing international isolation of North Korea and improved ties between Saudi Arabia and Iraq. But he is likely to go down as among the least successful secretaries of state in history, and one big reason was his poor management of his relationship with Mr. Trump.

Although Mr. Tillerson spent his first months on the job getting to know Mr. Trump at lunches, dinners and White House get-togethers, the two never established a comfortable rapport.

Once the head of the Boy Scouts of America, Mr. Tillerson was outraged when the president spoke to the Boy Scouts in July and turned it into a political event. When Mr. Trump declined to denounce white nationalists who paraded in Charlottesville in August, Mr. Tillerson made it clear that Mr. Trump speaks for himself — not his secretary of state.

The growing distance between the men was on clear display during Mr. Trumps trip to Asia in November, when Mr. Tillerson visited the prison that once housed Senator John McCain, a Republican from Arizona who is a frequent critic of the president.

But perhaps the most puzzling part of Mr. Tillersons tenure was his poor oversight of the State Department. As a former top business executive, his managerial skills were thought to be his chief asset.

But he failed to quickly pick a trusted team of leaders, left many critical departments without direction and all but paralyzed crucial decision making in the department.

He approved one global conclave in Washington just eight days before the event was to start, ensuring that few leaders from around the world were able to attend. He rarely sat for comprehensive briefings with many of his top diplomats and often failed to consult the State Departments experts on countries before visiting.

Foreign diplomats — starting with the British and the French — said Mr. Tillerson neither returned phone calls nor, with much advance warning, set up meetings with his counterparts. Strategic dialogues with many nations, including nuclear weapons powers like Pakistan, were ended without explanation.

The State Departments policymaking process devolved into conversations between Mr. Tillerson and a lone top aide, neither of whom had much experience or knowledge about many of the countries they discussed.

Mr. Tillerson became so isolated that even top administration officials like Mr. Pompeo and allies like Condoleezza Rice, the former secretary of state whose recommendation was crucial to his selection, had trouble penetrating a phalanx of staff to speak to him directly.

The relationship between top management and the bulk of the State Department was toxic, said Ambassador James F. Jeffrey, a former senior diplomat and fellow at the Washington Institute who once worked with Mr. Tillerson. And that was a total mystery because the people at the State Department would work for the devil if he is advancing American interests, which Mr. Tillerson was.

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