BREAKING: McClellan resigns, Rove loses post

Breaking news this morning:

The overhaul of the White House staff continued today as Karl Rove gave up his portfolio as senior policy coordinator to concentrate more on politics and November's midterm Congressional elections and Scott McClellan stepped down as the president's chief spokesman.

Mr. Bush announced that the policy position will be taken by Joel D. Kaplan, who is now the deputy budget director.

The moves came after a pledge on Monday by the new chief of staff, Joshua B. Bolten, to "re-energize" the White House's internal operations. They leave the White House with three deputy chiefs of staff: Mr. Rove, Mr. Kaplan and Joe Hagin, who handles adminstrative matters.Mr. Rove has been Mr. Bush's senior political adviser since his campaign for governor in Texas. Just over a year ago, he was promoted to deputy chief of staff in charge of policy development.

A very interesting development indeed.