Multiple White House officials said Bannon had threatened to resign over the effective demotion, a warning that sources said "stunned" the president. According to sources speaking to Axios, President Trump is considering cleaning house on his staff, which entails getting rid of the controversial chief strategist and chief of staff. "Things are happening", an aide said,"but it's very unclear the president's willing to pull that trigger".
While Bannon wasn't the only one affected by the NSC's reorganization, it was surprising, given that Trump signed an executive order in late January putting Bannon on the council.
In an administration where proximity often equates to power, Mr Kushner was one of the U.S. officials sitting closest to Mr Trump on Thursday as the president dined with Chinese counterpart Xi Jinping.
Kushner was seated next to Jinping's wife-two seats down from Trump himself-while Bannon was seated further down, "sandwiched between two Chinese officials".
National Security Adviser H.R. McMaster's influence grew this week with President Donald Trump reportedly launching his airstrikes on Syria following deep consultations with the Army lieutenant general.
White House spokesperson Lindsay Walters in a statement on Friday that the reports of staff turnover are "completely false" and "driven by people who want to distract from the success taking place in this administration".
Republican strategist Charlie Black, who has known Trump for 30 years, said he did not think a shakeup was imminent and that Trump's White House reflects his traditional approach to running his business. But, in the midst of a probe into the Trump team's possible ties to Russia, Mr Kushner reportedly failed to disclose his meetings with two powerful Russian officials.
White House sources told The Huffington Post that the president is considering replacing Priebus with Goldman Sachs President Gary Cohn, who now serves as Trump's top economic adviser.