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Goldman vet with reputation as a moderate dealmaker gains sway with Trump


  As power struggles and ideological battles engulfed the White House, an unlikely player is exercising new influence on the direction of President Donald Trump's administration.  

Gary Cohn, a former Goldman Sachs president, is capitalizing on his new position as director of Trump's National Economic Council to push a centrist vision and court bipartisan support on some of Trump's top agenda items, such as tax reform and a $1 trillion infrastructure plan.  

The growing strength of Cohn and like-minded moderates was on display this week as Trump reversed himself on several high-profile issues — including a less confrontational approach to China, an endorsement of government subsidies for exports and the current leadership of the Federal Reserve. The president's new positions move him much closer to the views of Cohn and others on Wall Street, not to mention mainstream Republicans and Democrats. 

It was the clearest sign yet that an alliance of moderates in the White House — including Cohn; senior adviser Jared Kushner, the president's son-in-law; and another influential Goldman Sachs alumna, Dina Powell — is racking up successes in a battle over ideology and control with hardcore conservatives led by chief strategist Stephen Bannon, who held sway at the start of the administration.  

'The first rule of governing'  

In a White House short on experienced personnel, Cohn has found an edge by hiring two dozen policy experts, most with government experience. His team produced detailed proposals on overhauling the tax code, rebuilding infrastructure, cutting back financial regulations and restructuring international trade deals. He is widely considered a future candidate to be chief of staff.  

"Cohn might be a newbie to policy and Washington, but you have to give him credit for one thing," said Gene Sperling, who held Cohn's job during the Obama administration. "While others seemed engaged in ideological and 'House of Cards'-like staff warfare, he quietly and quickly focused on the first rule of governing: He hired some competent, professional staff at the NEC, and it has paid off for him."   

Cohn may be liability to Trump's base  

Cohn now finds himself in the awkward — and politically risky — position of being praised by Democrats but shunned by conservative allies of Trump who see the former Goldman Sachs executive as anathema to the values that got Trump elected.  

"From a pure political perspective, I do not know if the White House appreciates how Gary Cohn is a liability with the Republican and conservative base, as well as the Republican Congress," said Sam Nunberg, a strategist on Trump's 2016 campaign. "The Trump White House will always be held in suspicion when you have someone who's consolidated full economic power in the White House who is also a liberal, New York Democrat."  

Conservative media take aim  

Cohn has been getting flak in the conservative media as he has risen in profile. Rush Limbaugh last week called him "a very ideological liberal Democrat" and a "trader at Goldman Sachs." He expressed concern that Cohn and his allies in the White House "are starting to have sway" at Bannon's expense.  

Cohn, who declined to comment for this article, has given thousands of dollars to candidates from both parties, including President Barack Obama and former candidate Hillary Clinton.  

Cohn could be key to Democratic support  

White House aides say Cohn has done well because Trump sees him, more than anything else, as a dealmaker. Cohn represents a bloc of White House officials who are working harder than before to court Democratic support for key parts of Trump's agenda, having seen the Republican Party splinter during the health-care debate.  

"I'm not a Democrat, and I'm not a Republican," Cohn often says in meetings with business executives, according to two people familiar with his exchanges. "I just want to get things done."  

People who have met with Cohn in his new role said they weren't aware of what his ideology was. He just seemed driven to forge agreements.  

'Way behind the eight ball'  

That philosophy has led Cohn to show enthusiasm for ideas such as a new tax on carbon — a Democrat-friendly idea which would raise revenue to ease tax reform, a top presidential priority, while also helping to curb carbon emissions. The idea is ridiculed by many conservatives on Capitol Hill, and the White House rapidly distanced itself last week after word leaked that senior officials were studying the concept.  

"I think the National Economic Council has done a terrible job," said Larry Kudlow, who was one of Trump's top economic advisers during the campaign. "It's the NEC's job to put a plan together and show the president options and make decisions. So far, I would say they are way behind the eight ball."  

Influencing the president  

But even as the legislative agenda struggles to gain momentum, Cohn and his allies are having a clear impact on the president's thinking. In the past week, Trump reversed his earlier statements and said he supported the Export-Import Bank, would not declare China a "currency manipulator" and said flattering things about Federal Reserve Board Chair Janet L. Yellen.  

Conservatives took aim at the Ex-Im Bank and the Fed throughout much of Obama's term, while Trump, as part of his tough trade rhetoric, promised to go after China's currency practices on Day One of his administration.  

Cohn wasn't part of campaign  

Cohn's stature among the top advisers is notable because he is one of the few who played no role in the campaign. Cohn, who grew up in a middle-class family and struggled in a number of schools because of dyslexia, graduated from American University and took a job with U.S. Steel in Ohio. During a trip to New York, he coaxed a well-dressed senior Wall Street executive into sharing a cab with him to the airport, acting as if he knew financial markets (he knew virtually nothing), according to an interview he gave author Malcolm Gladwell. Cohn schmoozed his way into his first Wall Street job and then climbed the ranks, eventually becoming Goldman's president and chief operating officer.  

While friends say he loves his new job, they say Cohn also holds the traditions of Washington in low regard.  

At a recent dinner with friends in New York, he called Washington a "s---show," according to a person familiar with the exchange.  

Cohn has not tried to shirk his past at Goldman Sachs or hide his lavish lifestyle. He recently had drinks at the Four Seasons with Goldman Sachs chief executive Lloyd Blankfein, and shortly after the failure of the House GOP health-care legislation, he went on vacation in the Bahamas.  

Cohn's deep bench of experts  

If he is able to deflect the growing criticism from hardcore conservatives, White House officials say Cohn will have a strong future as a Trump adviser given his experience and the deep bench of experts he has established.  

This includes D.J. Gribbin, an infrastructure expert, and Shahira Knight, a former congressional aide on tax policy who joined the White House from Fidelity Investments.  

Other top members of the team include Kenneth Juster, who is slated to play a top White House role in international negotiations; Jeremy Katz, a former White House official in the George W. Bush administration; and Ray Starling, who works on agriculture issues and was formerly the general counsel for the North Carolina Department of Agriculture and Consumer Services.  

Ideas on air-traffic control  

While Cohn has met with lawmakers from both parties and executives from numerous companies in his role, he rarely telegraphs what the White House plans to do.  

One exception came last week, when — during a gathering of chief executives — he went into great detail about how the U.S. air-traffic-control system needed to be reworked.  

He quickly moved through a technical discussion on why the United States should scrap its land-based radar system and adopt a global-positioning system, suggesting he had already devoted time to the topic. He said their approach would save 25 percent of the jet fuel consumed each year.  

"We are going to cut flight times down fairly dramatically," he told the executives. "We are going to cut the experience down. We are going to cut tarmac time down."  

'You've got to give these Goldman Sachs guys credit'  

His penchant for dealmaking has even attracted the admiration of Office of Management and Budget Director Mick Mulvaney, a tough fiscal conservative and longtime critic of government spending. Cohn, working to fulfill Trump's pledge to spend billions to rebuild infrastructure, has toyed with an idea that would pair $200 billion in taxpayer money with $800 billion in additional funds, mostly from private investors.  

"You've got to give these Goldman Sachs guys credit," Mulvaney said this week on CNBC about Cohn's plan. "They know how to lever up."


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