Too many cooks

20 March 2017 By Gina Chon Follow @GinaChon

A clash between presidential economic adviser Gary Cohn and Treasury’s Steven Mnuchin is delaying the naming of a vice chair of supervision. Mnuchin’s refusal to reject protectionism at the G20 suggests a deeper split over trade. Goldman alums don’t guarantee policy coherence.

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Federal Reserve Governor Dan Tarullo, who has been de facto head of regulatory policy since 2009, will leave the central bank around April 5. The White House has not yet named a nominee to replace him and take the role of vice chair of bank supervision, a position that was created by the 2010 Dodd-Frank Act but has never been filled.

David Nason, CEO of GE Energy Financial Services, told the White House he no longer wants to be considered for the role, the company said on March 8.

Separately, the G20 countries on March 18 dropped language promising to “resist all forms of protectionism” in its latest communiqué after objections from U.S. Treasury Secretary Steven Mnuchin, who represented the Trump administration at the meeting of finance ministers and central bank governors in Germany.

"What was in the past communiqué is not necessarily relevant from my standpoint," Mnuchin said at a news conference. President Donald Trump has said trade deals have hurt the United States and he has vowed to renegotiate some of those pacts.

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