From Bannon's interview:
"Bannon dismissed the far right as “irrelevant”, Kuttner wrote, quoting the Trump aide as saying: “Ethno-nationalism – it’s losers. It’s a fringe element. I think the media plays it up too much, and we gotta help crush it, you know, uh, help crush it more … These guys are a collection of clowns.”:
"Regarding the Democrats, Bannon said: “The longer they talk about identity politics, I got ’em. I want them to talk about racism every day. If the left is focused on race and identity, and we go with economic nationalism, we can crush the Democrats.”"
He's not against them and they serve a purpose. I wonder if he's manipulating them to keep the focus on racism.