The sources said the development follows Cohn’s criticism of Trump’s comments on the Charlottesville protests, according to the report. The Journal had earlier reported that Trump was considering Cohn as a replacement for Janet Yellen. Her term is set to end in January 2018.
The news follows the resignation of Stanley Fischer as vice chairman of the Federal Reserve.
A recent survey of economists revealed that a majority believes Yellen will not be renominated as Fed chair, with only 17% of the respondents saying Yellen will be chosen for another term. Of those who think Yellen will not be renominated and gave an opinion, 49% believed Cohn is most likely to succeed as chairman.
Federal Reserve Bank of New York President William Dudley previously said in an interview that he thinks Cohn is a “reasonable” candidate for the post. "[Cohn] knows a lot about financial markets. He knows lots about the financial system," he said.
Despite his role as White House economic adviser, Cohn is seen as an unusual choice because he is not an academic economist unlike recent chairmen, according to a Washington Examiner report.
On the campaign trail, President Trump had accused Yellen of manipulating monetary policy to support former President Barack Obama and the Democratic Party. The president has relaxed his stance on Yellen since he took office, even entertaining the prospect of reappointing her, according to the report.
Gary Cohn, an economic adviser to President Trump, is now unlikely to receive a nomination for the post of chairman of the Federal Reserve Board of Governors, The Wall Street Journal reported, citing “people familiar with the president’s thinking.”