Meanwhile, Pei Du was leading a campaign against rebel generals Zhu Kerong and Wang Tingcou north of the Yellow River. It was said that, while Yuan had no resentment toward Pei personally, he wanted to be chancellor and was fearful that if Pei were victorious, Pei would be recalled and would again dominate the court, and therefore Yuan, as well as his ally Wei Hongjian, were interfering with requests that Pei was making of Emperor Muzong during the campaign. Pei, incensed, submitted a harshly worded accusation against Yuan and Wei. Emperor Muzong was displeased with Pei's accusations, but as Pei was a prominent statesman, placated Pei by demoting Wei to be the director of the imperial armory and Yuan to be the deputy minister of public works (工部侍郎, "Gongbu Shilang"), relieving Yuan of his position as imperial scholar. However, it was said that Emperor Muzong continued to trust Yuan greatly, despite removing him from his imperial scholar post. Indeed, soon thereafter, after the campaign ended (when the imperial government capitulated to Zhu and Wang by making them military governors), Yuan was made a chancellor with the title "Tong Zhongshu Menxia Pingzhangshi" (). (It was said that the capitulation was advocated by Yuan, who wanted to relieve Pei of his military command.)