Trump on Tuesday said he had selected Pompeo, a 54-year-old conservative Republican who has served since last year as Central Intelligence Agency director, to replace fired Secretary of State Rex Tillerson in the biggest Cabinet shakeup of his presidency.
Trump departed for a California trip Tuesday morning, he told reporters that he and Tillerson "disagree on things", and he singled out the Iran nuclear deal as an issue.
US stock index futures pared their gains and the dollar also trimmed gains versus the yen while extending losses versus the euro amid the news.
"Pompeo has a sort of hard-line approach on foreign policy that's quite black and white, and that's also how Trump sees the world", Ilan Goldenberg, a senior fellow at the Center for a New American Security who worked at the State Department under then-Secretary John Kerry, said in an interview in December.
In an August interview, Tillerson declined to defend Trump's support for "America's values", telling Fox News that "the president speaks for himself".
CIA Deputy Director Gina Haspel will replace Pompeo as the head of the CIA.
Via Twitter, the President thanked Tillerson for his service and said Pompeo "will do a fantastic job".
A White House official said Trump wanted to have a new team in place ahead of upcoming talks with North Korea and various trade talks.
Michael Flynn Resigned in February as Trump's national security adviser after disclosures that he had discussed US sanctions on Russia with the Russian ambassador to the United States before Trump took office and had misled Vice President Mike Pence about the conversations.
"She was the acting director for operations when I arrived, and she has a wealth of experience and background, and she has more than three decades experience overseas as well as at headquarters, ' said Brennan, saying she enjoyed 'tremendous respect" in the agency.
Last week, it looked like Mr Tillerson was unaware of the President's plan to meet North Korean leader Kim Jong-un.
Secretary of State Rex Tillerson is the latest Trump administration staffer to get the ax.
He cited the Iran nuclear deal as an example of disagreements with Mr Tillerson and said he and Mr Pompeo have "a similar thought process". "I wish him all the best in his future endeavors". Most pressing of all: what to do about North Korea?
Hours before his ouster, Tillerson raised eyebrows by issuing some of his strongest statements yet on Russian Federation.
A government outsider lacking diplomatic experience, Tillerson arrived at the White House after decades at Exxon Mobile, rising from engineer in 1975 to chairman and CEO in 2006, overseeing vast expansion of the company's operations worldwide. McEntee was escorted out of the White House after he was sacked, reportedly for over an unspecified security issue.
The rumors came a month after a bombshell NBC News report revealed Tillerson privately railed against the president and called him a "moron" at a closed-door meeting at the Pentagon.
Rumors of Tillerson's ouster first started late past year, when reports that appeared to be targeted leaks from the White House emerged that Trump was souring on his secretary of state, following policy disputes and embarrassing leaks. While that may have improved the standing of an agency Trump attacked repeatedly during his presidential campaign and the transition, it also raised concerns about Pompeo's commitment to keep the CIA free of politics.