(Kay Bailey) Hutchison drops out of leadership race

Sen. Kay Bailey Hutchison (R-Texas) is dropping out of the race for the No. 3 Republican leadership job, according to congressional sources.

Hutchison is informing her GOP colleagues Tuesday, setting the stage for a new face in the Republican hierarchy. It's now a two-man race for GOP Conference Chairman: Sens. Richard Burr of North Carolina and Lamar Alexander of Tennessee.

Hutchison's exit was widely rumored on Capitol Hill late last week. As Politico reported this morning, she had alienated her conservative colleagues in recent months and endangered her chances of moving up the GOP ranks. She will remain chairwoman of the Republican Policy Committee, meaning she retains a seat at the leadership office, albeit a less influential one.

The leadership elections - set in motion by GOP Whip Trent Lott's unexpected resignation - are set for Thursday. The current Conference chair, Sen. Jon Kyl (R-Ariz.), will easily win the race to replace Lott because he is unopposed.