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.