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:

VXX

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:

Cohn

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.

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3 thoughts on “Gary Cohn’s Anti-Nazi Leanings Not Welcome At Trump’s Fed, Will Leave White House After Tax Deal: BBG

  1. 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?????

    1. 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

    2. 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.

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