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. After all, the President’s August 15 press conference(ostensibly convened to discuss infrastructure) was a bizarre spectacle even by Trump’s standards. And Cohn had front row seats as the commander in chief regaled reporters with tales of Thomas Jefferson’s slaves.

Seen here on the left beaming with pride:

As a reminder, Cohn apparently penned a resignation letter before ultimately deciding to go down with the shipstay on board.

But the decision to stay didn’t stop Cohn from speaking out against Trump’s apparent cluelessness (some would call it “bigotry”). “This administration can and must do better in consistently and unequivocally condemning these groups and do everything we can to heal the deep divisions that exist in our communities,” Cohn told FT in August. (Note: Trump spells it “heel“)

Well subsequently, WSJ reported that Cohn’s disdain for Trump’s overt racism may have cost ol’ Gary the Fed. To wit:

President Donald Trump is unlikely to nominate Gary Cohn, his top economic adviser, as the next Federal Reserve chairman, indicating that he is open to considering additional names for a pick he has said he would like to make by year’s end, according to people familiar with the president’s thinking.

This shift inside the Oval Office was largely due to Mr. Cohn’s reaction to Mr. Trump’s response to the violence in Charlottesville, Va., in which the president at times blamed both white supremacists opposing the removal of a Confederate war statue and counterprotesters.

In other words: “I’m sorry Gary, you seem like a good guy and all, but when it comes to dictating monetary policy we’re looking for someone who’s more closely aligned with our feelings on the whole Master Race thing.

Sure enough, Cohn is not in the running. Here’s Bloomberg:

President Donald Trump does not intend to appoint National Economic Council Director Gary Cohn to lead the Federal Reserve, three people familiar with the matter said, Bloomberg News reports.

Trump said in at least one private meeting last week that Cohn has no chance of being Fed chair, according to a person present for the remarks.

Trump has privately told advisers that Cohn is doing a great job in his current role and that he wants to keep him at the White House through congressional consideration of his proposed tax overhaul, according to a person familiar with the conversations.

“No decision has been made and no candidate has been ruled out but Gary’s role is too crucial to getting tax reform done,” a senior administration official familiar with the president’s thinking said. It may be “too important for him to continue to be the lead, for him to announce a change at this time.”

Right. It’s all about his very “important” role in tax reform and nothing to do with him rebuking Trump for not rebuking Nazis.

Sorry Gary, no Fed for you.

Oh, and then this, from the same Bloomberg post:

Cohn is likely to leave the White House soon after Congress disposes with the tax plan, two people said. Cohn declined to comment.

And just like that, another “rumor” becomes reality.