Many will know Gary Cohn as Donald Trump’s top economic advisor and Goldman Sach’s former number two. It seems since rumors hit that he was resigning from his advisor position, the markets have tumbled significantly.
It was nearly immediately after the rumors hit Twitter that things Began to change. It started with the S&P 500 fall at around 10am Thursday. Gold has always been a huge safe spot for investors. That said, investors began pulling into their safety assets. While Thursday’s chaos ensued, the White House denied the rumors of his parting.
Wall Street sees Cohn as a central figure when it comes to most the administrations business-friendly ideas. Many think that if he steps away, markets would crash. In a report with CNBC, Jeffrey Sonnenfeld from the Yale School of Management said “ I don’t want to be an alarmist, but there is a lot of faith that his going to help carry through the tax reform that people are looking for.”
Despite all the drama and negativity that was brought on by the election, stocks soared. Investors everywhere had high hopes fiscal stimulus, tax cuts and deregulation, but by Spring these already seemed like hopes that may have been too high.
As of today it seems things are taking a grim turn. Once Merck CEO Kenneth Frazier decided to resign from the president’s manufacturing council, a boat load of other executives decided to follow and a panel of business leaders was split. With that, Wall Street’s faith in the Trump Administration is dwindling quickly. There is no doubt that the loss of someone as central and successful as Gary Cohn would completely break it.