Economy

Cain to Withdraw From Fed Consideration

Cain to Withdraw From Fed Consideration

The Fed left its policy rate unchanged last month, and chairman Jerome Powell, whom Mr Trump installed in February 2018, said rates could be on hold for some time as global risks weigh on the economic outlook and inflation remains muted.

On Thursday evening, ABC News reported that Herman Cain is expected to withdraw from consideration to be nominated to the Federal Reserve Board of Governors.

Three GOP senators - the Lisa Murkowski of Alaska, Utah's Mitt Romney and North Dakota's Kevin Cramer - told The Associated Press they would probably vote against Cain. "We as House Democrats have always said the Fed should be determining the rates, not politicians".

"I don't think Herman Cain will be on the board of the Federal Reserve", he told reporters Tuesday.

Moore has said recently he wanted to accommodate Trump's policies, that he feels the president's reelection was necessary for the country's economic success, and wants to do battle with what he calls "growth-phobiacs" at the Fed.

PHOTO: President Donald Trump listens to South Korean President Moon Jae-in speak during a meeting in the Oval Office of the White House, Thursday, April 11, 2019, in Washington.

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Cain's bid for the 2012 Republican presidential nomination ended after he was accused of sexual harassment in the 1990s, when he led the National Restaurant Association. "We'd have a standard on which to base our money", Trump said back in 2016.

Supporters argued Cain had experience because he previously served on and later chaired the Kansas City Fed.

Earlier in the day, New York Representative Hakeem Jeffries, a member of the Democratic House leadership, said that there's "general concern" in the party about whether Trump understands the need for Fed the independence and whether president is trying to pressure the central bank for lower interest rates ahead of the 2020 election. Trump had reiterated his support for Cain as late as Wednesday night, he said. "You go through the process, but Herman's a great guy and I hope he does well".

AGF Chief U.S. policy strategist Greg Valliere also told FOX Business he thinks all of this talk about the Fed losing its independence is "overdone". Much has been made of the fact that Cain and Moore don't have Ph.D.s in economics, said Justin Fox at Bloomberg.

"Even if Stephen Moore does get confirmed, he would be one of 12 governors". "I think that should be helpful to the administration, actually".

Trump has announced Cain and former campaign adviser Moore as his choices to fill two open Fed seats, but hasn't taken the formal step of issuing a nomination.