US: Political chaos continues – Rabobank

Elwin de Groot, Head of Macro Strategy at Rabobank, points out that speculation that Gary Cohn, National Economic Council director, might step down from the US administration continued to linger in markets, although a White House official yesterday said he will remain in his position.

Key Quotes

“Mr. Cohn is seen as one of drivers behind President Trump’s pro-growth agenda and infrastructure and tax-reform programs and is regarded as a moderate force belonging to the ‘globalists’ camp, which is keeping a check on the more radical ‘economic nationalist’ forces within the administration, led by Stephen Bannon. The rift between these forces has come more and more to the open in recent weeks. Potentially this could further undermine the dollar, should the balance of power shift to the nationalist camp in future.”