Gary Cohn's Shot at Fed Chair Falls Apart

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President Trump is unlikely to nominate National Economic Council Director Gary Cohn to lead the Federal Reserve, according to the Wall Street Journal, after Cohn criticized Trump's response to violence in Charlottesville last month.

Trump's decision for Fed chair may come down to whether he would rather retain Yellen, despite her defense of banking regulation after the economic crisis, or choose someone new who may agree with him on the need for banking deregulation but also look for quicker interest-rate hikes. Mr. Cohn is one of the key White House hands tasked with shepherding an overhaul of the federal tax code through Congress. Another administration official stated Trump was "considering several candidates" for the Fed.

Cohn, who is Jewish, allegedly considered resigning after Trump criticized "alt-left" protesters and said there were many "fine people" who marched with neo-Nazis and white nationalists.

"Taking Gary Cohn out of the running - he is someone who is respected enormously in the markets - is at least a little bit unsettling", said Chris Low, chief economist of FTN Financial.

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Finally, the report said Yellen would likely accept a second term. Trump was reportedly furious with Cohn's comments.

"The president does not forget", said another source close to Trump, referring to Cohn's criticism.

As a member of the "Big Six", Cohn is one of two administration officials representing the administration in tax reform deliberations with congressional GOP leaders. But the President did not single Mr Cohn out for praise during a tax reform roll-out speech last week in Missouri, sparking speculation that their relationship had cooled.