Tags: Trump Administration | art cashin | trump | cohn | market | destabilize

Art Cashin: Markets Could 'Destabilize' if Another Top Trump Adviser Quits

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By    |   Wednesday, 07 March 2018 02:29 PM

Economic guru and longtime trader Art Cashin warns that the stock market could destabilize if another top White House adviser leaves in the wake of the departure of Gary Cohn.

Staunch free-trade supporter Cohn quit Wednesday as the director of the National Economic Council.

Cohn, who was president and chief operating officer of Goldman Sachs before joining the Trump administration last year, didn’t cite the reasons for resignation. However, he was a major proponent of free trade who was said to disagree with President Donald Trump’s plan to slap stiff tariffs on imported steel and aluminum.

In the wake of Cohn’s resignation, Trump looks set to impose those steep tariffs on imported steel and aluminum this week, a move that could spiral into a global trade war, Reuters explained. Trump also has stepped up pressure against China to develop a plan to reduce its trade imbalance with the United States by a billion dollars.

Cohn, the architect of a tax overhaul passed in December, was seen as a stabilizing force within the Trump administration. His departure is seen strengthening the hands of those advocating a protectionist agenda.

Cashin told CNBC that Cohn's departure stirred questions on Wall Street about a "philosophical balance" in the Trump administration.

Did Cohn's exit "leave the trade protectionist in charge?" asked Cashin, UBS director of floor operations at the New York Stock Exchange. "Obviously, the president wants to go back to the base that elected him," he told CNBC.

"Further changes in the White House — that might destabilize things," Cashin warned.

Cashin explained that although stocks fell Wedneday, bargain-hunting investors may prop up the market in the short term. "You're going to see the market try to come back here and see if there's another shoe to drop in the White House," Cashin said.

Meanwhile, trade fears returned to Wall Street.

“There is more of a political worry that has crept back into the market,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management.

“It’s not just the tariffs, but the broader White House changing ... all those things are undercurrents which are affecting market sentiment in the near-term.”

(Newsmax wire services contributed to this report).

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Economic guru and longtime trader Art Cashin warns that the stock market could destabilize if another top White House adviser leaves in the wake of the departure of Gary Cohn.
art cashin, trump, cohn, market, destabilize
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2018-29-07
Wednesday, 07 March 2018 02:29 PM
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