James Oliphant wrote this article.
In a White
House marked by infighting, top economic aide Gary Cohn, a Democrat and former Goldman Sachs banker, is
muscling aside some of President Donald Trump's hard-right advisers to push
more moderate, business-friendly economic policies.
Cohn, 56, did
not work on Republican Trump's campaign and only got to know him after the
November election, but he
has emerged as one of the administration's most powerful players in an ascent
that rankles conservatives.
Trump refers to
his director of the National Economic Council (NEC), as "one of my
geniuses," according to one source close to Cohn.
More than half a dozen sources on Wall Street and in the
White House said Cohn has gained the upper hand over Trump's chief strategist,
Steve Bannon, the former
head of the right-wing website Breitbart News and a champion of protectionist
trade opposed by moderate Republicans and many big companies.
Cohn is a key
administration link to business executives and White House sources say he will
lead the charge for Trump on top domestic priorities such as tax reform,
infrastructure and deregulation.
"Gary's singular focus is tax reform and he's working to try and get
that done in 2017," said Orin Snyder, a partner at law firm Gibson Dunn and a long-time friend of Cohn.
"He is
working to implement the president's twin goals of economic growth and job
creation. The tax plan will also include a reduction in the corporate rate, but
also tax relief for middle- and low-income Americans."
Some
conservatives fear Cohn may push through a tax plan that is unnecessarily
complicated and argue that including tax relief for middle- and low-income
Americans would not spur economic growth as much as cuts focused entirely or
mostly on businesses and entrepreneurs.
Adam Brandon, president of the conservative group
FreedomWorks, is disappointed Trump is not charging ahead with a plan unveiled
last year during his campaign that would slash taxes on businesses and wealthy
individuals.
That plan was shaped heavily by Stephen Moore, an economic
policy expert at the conservative Heritage Foundation think tank, who advised
Trump's campaign. But it has since been shelved.
"I don't
like the idea of scrapping it and starting over again," Brandon said.
A senior
administration official said the White House has started from scratch on the
tax plan and, while setting business tax cuts as the highest priority, is
consulting with lawmakers, economists and business leaders before taking it to
the Republican-led Congress.
Two
administration officials said reports that the White House was considering a
carbon tax and a value-added tax were incorrect, but that other ideas were on
the table. "We are considering a multitude of options for tax
reform," a White House official said on Sunday.
Associates of
both Trump and Cohn say the two have developed a bond. People who have worked
with Cohn say he is loyal, direct and assertive, traits that Trump likes.
Crucially, Cohn also has the trust of Jared Kushner, Trump's
adviser and son-in-law, and his wife Ivanka, Trump's daughter.
Cohn hired his
staff more quickly than other top officials, building a reputation for
competence in an administration hurt by early missteps over healthcare reform
and a travel ban, the sources said.
"Gary is a
huge asset to the Trump administration. He'll be of great help in eliminating
unnecessary regulation, stimulating growth and reforming the tax code,"
said billionaire hedge
fund manager John Paulson, an early backer of Trump who knows Cohn through Wall
Street circles.
The son of
middle-class parents in Cleveland, Ohio, Cohn overcame dyslexia and worked in
sales before elbowing his way into a position as a Wall Street trader and
rising to become president and chief operating officer at Goldman Sachs Group
Inc (GS.N).
Kushner was a
Goldman Sachs intern when he first crossed paths with Cohn. After Trump's
election victory, Kushner
paved the way for Cohn to meet the president-elect, who had spent much of the
campaign blasting investment banks as modern-day robber barons. Trump soon
named Cohn his NEC director.
Apparently
paying more heed to Cohn and other moderates on his team, Trump last week said he was open
to reappointing Janet Yellen as Federal Reserve chairman when her term
is up and he also held back from naming China a currency manipulator.
Both stances marked a reversal from his campaign when
Trump criticized Yellen and vowed to label China a currency manipulator on
"day one" of his administration, a move that could lead to punitive
duties on Chinese goods.
Sources close
to Cohn and inside the White House said there are sharp policy differences
between Cohn and both Bannon and Reince Priebus, White House chief of staff.
Cohn has
already put his stamp on regulatory policy by working with Kushner to
successfully push Wall
Street lawyer Jay Clayton for head of the Securities and Exchange Commission
after billionaire investor Carl Icahn, an early Trump supporter, had vetted
other candidates. Clayton's nomination has been advanced to the Senate for a
vote.
The vacant Federal Reserve vice chairman's seat is a key
regulatory role Cohn and his colleagues on the economic team want to fill soon. Cohn has interviewed nearly two
dozen candidates and has whittled the list down. Randal Quarles, a veteran of the George W. Bush
administration is one of several candidates left, a source familiar with
the process said.
Cohn will also
take a leading role in developing Trump’s infrastructure plan to rebuild
airports, roads and bridges. The biggest challenge may be figuring out how to
pay for the initiative, which Trump has estimated at $1 trillion.
While
conservatives are concerned by Cohn, they note that Bannon is still part of
Trump's mercurial administration and that Cohn could fall out of favor as
quickly as he has risen.
"Whoever is up today," Brandon said, "could be gone
tomorrow."
No comments:
Post a Comment