Trump to tap ex-presidential candidate Cain for Fed seat

Posted April 07, 2019

President Donald Trump is considering nominating former Republican presidential candidate Herman Cain to serve on the Federal Reserve Board, Axios reported Thursday, citing two unnamed "senior administration officials familiar with the decision". "He's a very, terrific man, terrific person. I would think he would do very well there", Trump said during an Oval Office availability with Chinese Vice Premier Liu He. Cain served in various positions in the Kansas City Federal Reserve in the 1990s and as CEO of the Godfather's Pizza chain.

The president two weeks ago said he planned to nominate Stephen Moore for a separate vacancy on the board.

Trump's plan to nominate an overt loyalist for a spot on the Fed board comes as Trump over and over again lambastes the central bank for raising interest rates four times previous year and could checker the Fed's long-cherished standing as an independent, apolitical body.

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Cain has criticized Federal Reserve policies in the past, suggesting in a 2012 Wall Street Journal column that the USA should return to the gold standard.

One of the officials told Axios that Trump "won't formally announce until the vet" of Cain "is completed".

Mr Trump has been accused of putting forward political loyalists to the Fed.

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In recent public writings and private meetings with Mr. Trump, Mr. Moore has pushed for the Fed to reverse at least two of the four interest rate increases that it approved past year. An Atlanta woman also said she had conducted an extramarital affair with Cain for more than 13 years.

Rampell also notes that Cain has gotten involved in right-wing grift schemes ever since his presidential campaign went down in flames in 2012. "If Herman Cain were on the Fed, you'd know the interest rate would soon be 9-9-9". The vocal Trump supporter since the 2016 presidential election has been a longtime critic of the Fed.

Prior to Cain and Moore, most Fed-watchers didn't see previous Trump appointees as just out to prop up the president's desire to sell positive economic performance to voters. He's a highly respected man. In addition to choosing Powell for the chairmanship, Trump has nominated all the current Fed board members with the exception of Lael Brainard, who was nominated by Barack Obama.

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Minutes of meetings during that period, obtained by Reuters from the Fed, show that the bank's directors were among those who repeatedly asked the Washington-based Board of Governors to raise rates when most of the boards of directors for the other Fed banks opposed any hike. A Fed spokeswoman confirmed to CNN that Powell had a brief conversation with Trump on March 8, but declined to elaborate any further. Kudlow last week called for the Fed not only to pause rate hikes but to actually cut rates by one-half percentage point, saying he and the president believed that was the best course of action.