Scaramucci ousted on US chief of staff's Day 1

Washington

ANTHONY Scaramucci was removed from his new job as White House communications director on John Kelly's first day as chief of staff, just 10 days after the financier joined President Donald Trump's staff.

"Mr Scaramucci felt it was best to give Chief of Staff John Kelly a clean slate and the ability to build his own team," Press Secretary Sarah Sanders said in a statement announcing the departure of the SkyBridge Capital founder.

Ms Sanders said that Mr Scaramucci left in a "mutual agreement" with Mr Kelly, who replaced Reince Priebus on Friday. "He does not have a role at this time in the Trump administration," she said, and won't return to a previous job at the Export-Import Bank. Mr Scaramucci didn't return calls for comment, and the Export-Import Bank didn't comment immediately.

The timing of Mr Scaramucci's ouster, whether at the hand of Mr Trump or at the insistence of Mr Kelly, is a strong signal to the rest of the administration that the president's new chief of staff has broad authority to impose discipline. Mr Scaramucci had previously said that he answered directly to the president, not to the chief of staff, and he had publicly feuded with Mr Priebus.

Ms Sanders said that Mr Trump "did not want to burden General Kelly with that line of succession. General Kelly has the full authority to operate in the White House and all staff will report to him."

Mr Scaramucci last week profanely criticised both Mr Priebus and White House chief strategist Stephen Bannon in an interview published by The New Yorker. The vulgarity-laced tirade didn't help his standing within the White House, according to one person close to Mr Trump. Ms Sanders said that Mr Trump found the remarks to be "inappropriate".

Mr Scaramucci's departure raises new questions about his plans to sell his stake in SkyBridge to China's HNA Group Co and little-known investment firm RON Transatlantic. The proposed transaction is being scrutinised by the Committee on Foreign Investment in the United States, which vets sales of American assets to foreign buyers to protect national security.

Former press secretary Sean Spicer, who resigned after Mr Scaramucci was hired on July 21, was seated with other White House officials at a ceremony in which Mr Trump awarded the Medal of Honor to a Vietnam veteran. There was speculation Mr Spicer would be asked to stay on, but both he and Ms Sanders declined to answer questions. One White House official, who spoke on condition of anonymity, said that Ms Sanders's role won't change.

Ms Sanders said that she was not aware of any changes in Mr Spicer's employment status. All other senior staff at the White House are planning to remain in their jobs, she said.

Mr Kelly was sworn in on Monday morning. White House officials had said that he would enjoy greater authority over the West Wing's staff than Mr Priebus, and he appears to have swiftly demonstrated that power. Mr Scaramucci was present in the Oval Office for Mr Kelly's swearing-in, shortly after 9am.

"He will do a spectacular job, I have no doubt, as chief of staff," Mr Trump told reporters in the Oval Office after Mr Kelly was sworn in. Later, in a meeting of his Cabinet, Mr Trump said that Mr Kelly's work as homeland security secretary - where he vigorously implemented the president's promised crackdown on undocumented immigration - "is nothing short of miraculous".

Mr Kelly, 67, represents a course correction after Mr Priebus proved ineffective, said Chris Ruddy, chief executive officer of Newsmax and a Trump friend. Mr Priebus declined to comment.

"The president is about performance. He rates everyone, including himself," Mr Ruddy said. "After healthcare failing and constant leaks, I think the president made a move to hit the reset button and bring in new leadership. It was smart and decisive."

In a sign that the White House was regrouping after its tumultuous week and defeat on the healthcare bill, Mr Kelly focused his first Cabinet meeting on the upcoming push to overhaul the nation's tax code.

"The number one topic of the Cabinet meeting today was talking about taxes, tax reform, what it would take to get tax reform done this year," Gary Cohn, the president's top economic adviser, said on Monday.

The president said in a tweet on Monday that stock-market highs, low unemployment, improved border security, the confirmation of his Supreme Court nominee and other economic indicators are all evidence that his administration is performing well. ''No WH chaos!" he wrote. BLOOMBERG