Gary Cohn unlikely to get tapped as Fed chair

Posted September 08, 2017

Sources close to the White House have signaled in the last week that Cohn appears unlikely to be removed due to his critical role on tax reform and Trump has been warned against ousting Cohn for that same reason.

President Donald Trump may choose not to nominate Gary Cohn as Federal Reserve chairman over comments he made about the Charlottesville riots, sources told The Wall Street Journal.

Cohn's public criticism of the President's reaction to the events in Charlottesville is reportedly why Trump has soured at the idea of appointing his top economic adviser.

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The Journal reported Cohn told associates he was disgusted by Trump's performance immediately after the president's August 15 news conference about the Charlottesville events.

Cohn, a former Goldman Sachs banker, has been considered the top contender to lead the Fed when Chair Janet Yellen's term expires in February 2018.

Cohn was reported to have drafted a letter of resignation because he took umbrage with the President's infamous remark blaming Charlottesville on "both sides".

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Trump has said he would consider reappointing Yellen, who was nominated to lead the Fed by his Democratic predecessor, former President Barack Obama.

According to the Journal, Cohn might have scotched his chance at the Fed job when he told the Financial Times the Trump administration "can and must do better" to condemn hate groups.

A White House official said Cohn remained an essential player in Trump's push for tax reform.

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But the president did not single Cohn out for praise during a tax reform rollout speech last week in Missouri, sparking speculation that their relationship had cooled.