Cain's Fed chances in peril as 4th Republican opposes

Lloyd Doyle
April 14, 2019

Former Dallas Fed advisor Danielle DiMartino Booth, AGF chief USA policy strategist Greg Valliere and Jim Lacamp, senior VP of investment at UBS, on President Trump nominating Herman Cain and Stephen Moore to the Federal Reserve's board of governors.

Senate Republicans have expressed concerns over Cain's support for slashing interest rates and also worry that he would not pass muster with a background check that might force sexual harassment allegations to resurface, according to ABC. "You want someone who is going to think for themselves and be able to hold their own around that table", she said.

The president nominates members to the Fed's seven-member board of governors.

"When Powell was first appointed, he might have gotten a chilly reception from our caucus" because he was elevated to Fed chair by Trump, Sherman said.

At a speaking event, Kudlow also said the White House is sticking by Herman Cain as a candidate for a Federal Reserve Board seat at the moment. But its deliberations on how to steer the economy and interest rates have a nonpartisan cast. These two choices, though, will make the central bank yet another partisan battleground. The chairman told the lawmakers that interest rates are at about the right level given current economic conditions and that the benefits of USA economic growth haven't been as widely spread as the Fed would like.

Trump's interest in potentially nominating Cain along with another political ally, conservative commentator Stephen Moore, has sparked questions among lawmakers from both parties in Congress about the president's influence on the central bank.

Neither Moore nor Cain have been formally nominated by Trump. "The likelihood is that they will be withdrawn".

The president's repeated exhortations against the Fed raising rates break with his predecessors, who generally avoided commenting publicly on the central bank's policies to protect its credibility and independence. Richard Nixon, fearing his re-election was at risk, ordered his Fed chairman, Arthur Burns, "not to allow a recession, even at the risk of stimulating inflation". Moore and Cain would likely be similarly beholden to Trump. The nominations must be approved by the Senate. Not so he could "please his political patrons" but because he knew it was right.

Other reports by Iphone Fresh

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