Join institutional investors, analysts and strategists from the world's largest banks: Subscribe today
Already have an account? log in
Gary Cohn’s Anti-Nazi Leanings Not Welcome At Trump’s Fed, Will Leave White House After Tax Deal: BBG
Remember how, back in August, stocks took a sudden tumble in the wake of Donald Trump’s bungled response to the violence in Charlottesville when a “rumor” began to circulate among traders that Gary Cohn was on the verge of resigning in disgust?
If you don’t recall what that looked like in markets, that’s ok because conveniently, Wednesday was the best day for the long VIX ETP (VXX) since then, so we’ve got a chart handy:
One could hardly blame Cohn for being disgusted with Trump.
The odds are very short that Trump will draw out the naming f the next Fed Chair as long as possible..lots of reasons…..first, he loves teasing out the inevitable. The man must be in control and when you get to name you ARE in control. Next, he knows that his appointments may offer the only avenue thru which he gets anything done. Trump won’t say so but Fed Chair is far more important to him than a Supreme Court appointment. That stuff is all esoteric legal shit..the Fed Chair is money and credit personified and Trump is not going to let just anyone have that power..it MUST be his person..as in HIS.
By the way..it gets tedious pointing out heisy’s snide BS…Trump was right to point out the counter protestor’s violent role..if any group in this sordid series of collisions is Nazi like it is antifa..just look at their outfits and gear…gee….wonder who they look like?????
Totally agree with that.
“President Trump is the ultimate drama queen. The president is drawing out his FED selection as he titillates the markets with the drips and drabs as to who is the most probable choice. Here is my best guess: Because this president reminds the nation how great he is doing using the stock markets as the barometer it would follow that his choice would be the best one for keeping equity prices elevated. Kevin Warsh and John Taylor would be a problem as the equity markets would become cautious for fear of short-term interest rates rising at a quicker pace. It seems that Jerome Powell and Janet Yellen would be the ones to sustain the current stock rally as they are known entities to the Wall street contingent. Of course the ultimate booster of all asset classes would be Neel Kashkari, the latest dissenter to the previous rate increases in 2017.
“There are rumors that John Taylor will be vice chair, which may send a hawkish signal but I will fade that for there have been vice-chairmen of quality (Don Kohn, Stanley Fischer) who have kowtowed to the Chair in an effort to build consensus. Pay no attention to the man behind the curtain.”
https://yragharris.com/2017/10/24/whats/#more-3489
Dems want an uber-dove and Trump probably wants an uber-dovish puppet. So it’ll be an uber-dove. And Trump can draw it out, using it as a negotiating chip to get something from the Dems like tax cuts in return for naming Fed doves, which Trump wants anyway because he’s a real estate guy who loves ZIRP and debt restructuring/monetization. A man like Trump highly skilled in defaulting is a good fit to lead a hopelessly over-indebted nation destined to default. His Fed puppets can help him to soft default on the US debt. Watch Abe and Kuroda/BOJ for an upcoming example first.