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Report: Trump Will Probably Not Pick Gary Cohn to Be Next Fed Chair After Criticism Over Charlottesville

By NexChange
Capital Markets

Despite indicating in July that he was considering Gary Cohn to succeed Janet Yellen as the next chairman of the Federal Reserve, President Trump is now unlikely to nominate his top economic adviser after Cohn criticized Trump’s response to the violence in Charlottesville, Virginia last month, the Wall Street Journal reports.

In an interview with the Financial Times, Cohn criticized President Trump for saying that “both sides” were to blame for the violence at a white supremacist rally. Cohn, who is Jewish, had reportedly been close to resigning.

This criticism apparently didn’t sit well with the notoriously volatile president, according to the Journal.

Mr. Trump wasn’t aware such a blunt critique was coming, said one person familiar with the president’s thinking. One White House official said the president visibly bristles at the mention of his economic adviser.

Mr. Trump had been eager to talk about the possibility of appointing Mr. Cohn as the next Fed chairman when he spoke about it during the July 25 interview with The Wall Street Journal. At the time, the president said he had “gained great respect for Gary” during their time together in the West Wing.

A White House official cautioned that Mr. Cohn, a former Goldman Sachs executive, may be able to repair his relationship with the president. Mr. Cohn is one of the key White House hands tasked with shepherding an overhaul of the federal tax code through Congress. If successful, Mr. Cohn may find himself in better standing, the person said.

If Trump does not nominated Cohn, there remains the possibility that he will retain Yellen as Fed chair.

Photo: YouTube




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