From Time:
"The problem is that the President doesn't want to make changes," says a White House adviser who is not looking for a West Wing job, "but he's lost some of his confidence in the three people he listens to the most." Those three are his Vice President, Dick Cheney, whose top aide, I. Lewis (Scooter) Libby, has been charged with brazenly obstructing the investigation into who leaked the name of CIA officer Valerie Plame; Bush senior adviser Karl Rove, who while not indicted has still emerged as a player in the scandal; and chief of staff Andrew Card, who gets some of the blame for bungling the response to Hurricane Katrina and even more for the botched Supreme Court nomination of Harriet Miers.
Farther down in the Time piece:
As for a shift in the lineup, Card could be named Treasury Secretary by the beginning of the year.
Right, because once you lose some confidence in someone, the natural thing to do is appoint that guy to one of--at least historically--the most powerful and sensitive positions in Washington. Oh, and bonus points for when the guy isn't qualified for the job.
P.S. The "White House adviser" cited above by Time also had this to say, "All relationships with the President, except for his relationship with Laura, have been damaged recently. The funny thing is everybody's failing now, in which case perhaps it's time to look at George Bush's relationship with George Bush." Wonder how close that "adviser" is to the White House... I hope they don't start a leak investigation to find out.