Trump considering picking Herman Cain for Fed board

Trump considering picking Herman Cain for Fed board

Trump considering picking Herman Cain for Fed board

The choice of Cain would mark the second nomination to elevate a Trump ally with deep roots in conservative politics to the Fed's main policy-making body, a panel that the president has sharply criticized in recent months as insufficiently committed to low interest rates.

"He's doing some pre-checking now and I would imagine he'd be in great shape", the president said.

When Trump does eventually fill those two seats, six of the Board's seven members will be Trump appointees.

The seven-member Fed board, along with presidents of the Fed's regional banks, plays a critical role in the USA economy, holding meetings to debate and vote on interest rates that affect everything from currency values to mortgage rates to savings accounts to the health of the economy.

Trump has announced plans to fill a second vacancy on the Fed board with another critic, Stephen Moore, who has echoed the president's own complaints that the Fed stifled economic growth by raising interest rates a year ago. "Of course, such grifting might enhance Cain's candidacy in Trump's eyes, but it hardly bodes well for a man seeking to join an institution with consumer protection duties".

Cain called the allegations false but said he had "made mistakes in my life".

Cain, the former chief executive of Godfather's Pizza Inc., has some prior experience at the Fed. Each of the 12 regional Fed banks has a nine-person board that includes local executives.

"I find Herman to be an outstanding person", Trump told reporters during an Oval Office appearance with the vice premier of China on Thursday.

Former Kansas City Fed President Thomas Hoenig described the role of fed directors like Cain as representatives of "Main Street business, community development, organized labor and financial services sectors" who help the Federal Reserve better understand the economy and oversee operations.

The President has blasted the central bank for going "loco" for raising rates four times a year ago. "But if it were a nomination, you can bet [what] the interest rates he would be pushing for.If Herman Cain were on the Fed, you'd know the interest rate would soon be 9-9-9". Those verbal public attacks have slowed as the Fed has signaled it will pause raising rates this year - a fact that Powell says has had no influence on how the central bank's interest rate setting decisions.

Senator David Perdue, a Georgia Republican, praised Cain. I told my folks that's the man. A Fed spokeswoman confirmed to CNN that Powell had a brief conversation with Trump on March 8, but declined to elaborate any further.

On Wednesday, White House economic advisor Larry Kudlow reinforced the president' support for Moore, despite a New York Times report that he failed to fully pay taxes and alimony. Mitt Romney is already publicly down on Cain and ambivalent about Moore, hoping for, as he told Politico, "someone.outside of the political economic leader not a partisan leader". "Loving affection, hugging on the phone".

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