Rumors of resignation broke out, U.S. Treasury Secretary Janet Yellen "stands aside" on tariffs, Wall Street is shocked

Tariffs greatly exceeded expectations, and the US stock market suffered a severe blow. Wall Street had hoped that Gary Cohn could influence Trump on tariff issues, but in reality, he did not play a major role in tariff decision-making; he merely acted as an explainer of the impact of tariffs on the market and the economy during a White House meeting. There are even rumors that Cohn will seek a "way out," otherwise the market's credibility will be severely damaged, even becoming notorious.

On April 6, media reports indicated that multiple hedge fund managers and financial executives had hurriedly contacted Cohn, hoping he could influence Trump on tariff issues. However, these efforts seemed futile, as during the stock market crash, Trump was playing golf at his West Palm Beach golf club. He stated on Friday that the tariff policy would continue to be implemented, and large corporations were not worried about the tariff plan.

Additionally, on April 5, CCTV reported, MSNBC host revealed that US Treasury Secretary Cohn might consider resigning due to his inability to tolerate the "absurd tariff algorithm." Cohn's behavior was described as "alternative" within Trump's inner circle, and the president "is not close to Cohn at all and does not listen to him." Even more shocking, the MSNBC host stated: "Someone told me he is looking for a way out, seeking an opportunity to go to the Federal Reserve. Because in the past few days, he has really been damaging his credibility and record in the market."

Cohn "sidelined" on tariffs, Wall Street shocked

Reports indicate that Cohn is not the main driver of tariff decisions, as he merely presented potential scenarios for the market and economy under different tariff levels during meetings in the Oval Office.

Trump's tariff policy is primarily shaped by a small circle, with senior advisor Peter Navarro and Commerce Secretary Howard Lutnick dominating Trump's opinions on tariffs, and US Trade Representative Jamieson Greer also being an important member of the team.

Cohn admitted in a television interview after the tariff announcement that he was not involved in negotiations with other countries but focused on the government's tax agenda. Just days earlier, Cohn had publicly acknowledged the inherent contradictions of the tariff policy. He stated that the most effective tariff policy is like "a shrinking ice cube," and acknowledged that tariffs cannot simultaneously increase revenue and help restore American manufacturing.

Previously, multiple hedge fund managers and financial executives had hurriedly contacted Cohn, hoping he could influence Trump on tariff issues. After all, as the former Chief Investment Officer of Soros Fund Management, Cohn should have been a potential ally. Theoretically, he could explain to Trump that extreme tariffs would harm the economy and disrupt the market. However, these efforts seemed futile, as the US stock market lost $5.4 trillion in market value within two days

U.S. Stock Market Crash, Government Officials Worried

The market turmoil has not only caught Wall Street elites off guard, but government officials are also beginning to worry about the potential impacts.

Those executives who were once elated by the Trump administration's promises of tax cuts and deregulation are now facing an economic agenda that could disrupt their businesses. Private equity firms have delayed IPOs and lowered their expectations for a trading recovery. Hedge funds are assessing whether Trump's next moves are too unpredictable to even place bets on.

JP Morgan's economists have even predicted a recession in the U.S. this year. The bank's chief U.S. economist, Michael Feroli, stated:

We now expect real GDP to contract under the pressure of tariffs, with year-over-year (fourth quarter to fourth quarter) real GDP growth at -0.3%, down from a previous forecast of 1.3%.

Not only are Wall Street traders and executives of American companies shocked by the market chaos. Within the government, the impact of the stock market plunge has also raised tensions, with officials closely watching whether U.S. stocks will experience a third consecutive decline on Monday. Even Trump's staunchest political allies are beginning to predict broader implications. Texas Senator Ted Cruz stated that comprehensive tariffs "will destroy domestic jobs and cause substantial harm to the U.S. economy."

In the face of the turmoil brought about by tariff policies, some Republican lawmakers are beginning to attempt a counterattack. Senator Chuck Grassley and three other Republicans have jointly proposed a bipartisan bill aimed at returning tariff powers to Congress, requiring approval for most new tariffs within 60 days