Trump falls out with frontrunner for US Fed chairmanship

Donald Trump has fallen out with the frontrunner to replace Janet Yellen as chair of the US Federal Reserve if she does not remain for a second term.

Trump is reportedly now “strongly against” nominating White House economic adviser Gary Cohn after the former Goldman Sachs banker criticised the president’s response to a white supremacist rally in Charlottesville last month, the Washington Post reports.

Yellen’s four-year term ends in February.

Yellen and Trump had both signalled recently that she could stay for a second term; however, she has recently defended regulators’ actions since the global financial crisis as the president pushes a deregulatory agenda.

Cohn was the frontrunner to replace Yellen in a survey of economists conducted in July, followed by Stanford economist John Taylor and Kevin Warsh, a Fed governor until 2011.

Trump was reportedly “livid” that Cohn, who is Jewish, criticised the administration’s failure to condemn neo-Nazi and white supremacist groups when they descended on Charlottesville, Virginia late last month.

M&G head of retail fixed interest Jim Leaviss has previously warned on the risk of a “gold nutter” or Trump business crony with very little monetary policy experience replacing Yellen.