Economy

Trump says he is recommending Herman Cain for Fed board

Trump says he is recommending Herman Cain for Fed board

President Donald Trump is expected to name 2012 GOP presidential candidate Herman Cain to the Federal Reserve, Axios is reporting.

"But he likes Cain and wants to put him on there", a senior official who has discussed the matter with the president told Axios, which first reported the news. On March 22, the president said he would nominate Stephen Moore, a conservative columnist and pundit, to fill one of those seats.

A candidate for the Republican Party's nomination in the 2012 presidential elections, he suspended his campaign following allegations of sexual misconduct, which he denied. In a 2012 Wall Street Journal column, Cain argued that the Fed's policies had manipulated the value of the dollar.

Trump suggested those old claims would not disqualify Cain from a Fed post. An Atlanta woman said she had had an extramarital affair with Cain for more than 13 years.

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.

Cain called the allegations false but said he had "made mistakes in my life". He's a highly respected man.

During the presidential campaign, Cain became known for his "9-9-9" tax plan, which would have replaced much of the US tax code with a flat 9 percent tax on sales transactions as well as corporate and individual income.

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Trump has repeatedly denounced the Fed leadership of Powell, whom he selected as chairman after deciding not to re-nominate Janet Yellen.

Trump's other nominees have held views more in line with traditional selections for the Fed board.

"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".

The White House did not immediately respond to a request for comment on the reports. Mr. Moore blames those increases for a drop in commodity prices at the end of past year.

"Despite the unnecessary and destructive actions taken by the Fed, the economy is looking very strong", Mr Trump tweeted.

This year the Fed has signalled a pause amid signs the global economy is slowing, with policymakers expecting they will not raise rates at all in 2019.