sunny.png
Sunday August 18th, 2019 8:06PM

Trump says he is recommending Herman Cain for Fed board

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — President Donald Trump said Thursday he is recommending Herman Cain, a political ally and former presidential candidate, for a seat on the Federal Reserve board.

"I've told my folks that's the man," Trump told reporters in the Oval Office, saying that Cain is currently going through background checks prior to a formal nomination.

"He's a very terrific man, a terrific person. He's a friend of mine," Trump said. "I have recommended him highly for the Fed."

The choice of Cain would mark the second Trump nomination that would elevate a conservative Trump ally to the Fed's main policy-making body, a panel that the president has been highly critical of in recent months.

The president last week said he plans to nominate Stephen Moore for a separate vacancy on the board. Moore's nomination has encountered criticism that he is unqualified and too politically focused for a Fed board seat.

Cain, a former CEO of Godfather's Pizza, ran for the 2012 Republican presidential nomination but dropped out after allegations of sexual harassment and infidelity.

The nominations of both Cain and Moore would require Senate confirmation. Sen. John Thune, the GOP Whip, said lawmakers would have questions for both men.

"They all have to go through the process and see whether or not they're a good fit — both in terms of qualifications and just the experience and everything else," Thune said. "You want somebody on the Fed to be somebody who's very knowledgeable on economic issues."

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

After Trump announced his intention to nominate Moore to the Fed board, there have been published reports stating that Moore had a lien of more than $75,000 filed against him in January 2018 for unpaid taxes and he has fallen behind on alimony and child support payments to his ex-wife.

However, Larry Kudlow, head of the president's National Economic Council, told reporters Wednesday that Trump is "fully behind" Moore's nomination. Moore served as a campaign adviser to Trump in 2016, helping to formulate Trump's tax cut plan.

Moore has been highly critical of the Federal Reserve, saying in December that Chairman Jerome Powell should be fired for backing a fourth Fed interest rate hike that month. Moore now says that comment was written "in a time of anger."

Cain met with Trump in January to discuss a possible nomination to the Fed board but at the time the White House said that Trump was looking at multiple candidates for the two Fed openings.

Cain, who served for a number of years on the board of directors of the Fed's Kansas City regional bank, has also been critical of the central bank's policies.

In a 2012 Wall Street Journal column, Cain said that the Fed's policies manipulated the value of the dollar. In the article, he advocated a return to the gold standard as a way to control inflation, a position taken by other Fed critics but which many economists call unworkable.

Cain in September co-founded a pro-Trump super political action committee, America Fighting Back PAC. It features a photo of the president on its website and says: "We must protect Donald Trump and his agenda from impeachment."

Cain dropped out of the race for the 2012 Republican presidential nomination after allegations that he had engaged in sexual harassment when he led the National Restaurant Association in the 1990s. An Atlanta woman also said she had conducted an extramarital affair with Cain for more than 13 years.

Cain called the allegations false but said he had "made mistakes in my life." Before leaving the race, Cain had put forward a "9-9-9" tax plan that called for replacing the current tax system with a flat 9 percent business and individual income tax, and a 9 percent sales tax.

Trump has been highly critical Powell, the person he picked to be Fed chairman after deciding that he would not renominate Janet Yellen. In addition to selecting Powell for the top job, Trump has nominated all the current Fed board members with the exception of Lael Brainard, who was nominated by Barack Obama.

Trump's other nominees have held views more in line with traditional selections for the Fed board. The White House announced Thursday that Trump was nominating Michelle Bowman, a Kansas banking regulator, for a full 14-year term on the Fed. She joined the Fed last year, taking over a term that will end next year.

Trump, however, has grown increasingly unhappy with Fed decisions under Powell's direction, especially after the stock market took a nosedive last year as the central bank was hiking rates four times. Since January, the Fed has reversed course and now says it expects no further rates hikes this year.

Even with that change, Trump has continued to be critical. 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.

In a tweet Thursday, Trump said the economy was looking very strong "despite the unnecessary and destructive actions taken by the Fed."

___

AP White House reporter Darlene Superville and Chief Congressional Correspondent Lisa Mascaro contributed to this report.

  • Associated Categories: Local/State News, Politics, Associated Press (AP), AP Elections, General Election News, General Presidential Election News, AP Business, AP Business - Economy, AP Business - Industries, AP Business - Financial Services
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Nissan's Ghosn arrested again in financial misconduct case
Nissan ex-chair Ghosn arrested for 4th time as brief time outside detention is cut short
5:39PM ( 10 minutes ago )
Trump says he is recommending Herman Cain for Fed board
Trump says he is recommending former GOP presidential candidate Herman Cain for Fed board
5:36PM ( 14 minutes ago )
Motel 6 agrees to pay $12 million to settle lawsuit
The national chain Motel 6 has agreed to pay $12 million to settle a lawsuit filed by Washington state claiming names of hotel guests were improperly provided to immigration officials for two years
5:29PM ( 21 minutes ago )
Associated Press (AP)
House votes to end support for Yemen war, rebuffing Trump
Congress has rebuffed the Trump administration over support for the military campaign in Yemen that's being led by Saudi Arabia
4:47PM ( 1 hour ago )
The $1 billion ask: Trump all-in on fundraising for 2020
The $1 billion ask: President Donald Trump is well on his way to raising the $1 billion his campaign believes it will take to win him another term in the White House
4:22PM ( 1 hour ago )
Hickenlooper to meet Charleston church shooting survivors
Democratic presidential candidate John Hickenlooper is meeting with survivors of a racist massacre at a historically black church during a campaign trip to South Carolina
4:16PM ( 1 hour ago )
AP Elections
O'Rourke, Sanders vie for same young voters in 2020 campaign
In the 2020 Democratic presidential primary race, Beto O'Rourke and Bernie Sanders are vying for the same young voters
6:00AM ( 11 hours ago )
Thai election body orders redo in places over irregularities
Thai election authorities have ordered a recount of votes and new elections in some polling areas after finding irregularities in last month's elections
5:10AM ( 12 hours ago )
Justice reform activists want more ideas from Dem candidates
2020's missing issue? Criminal justice gets little mention
4:09AM ( 13 hours ago )
General Election News
'He hugs everybody': Women divided over defense of Biden
Prominent women defend Joe Biden, but can he survive under today's #MeToo lens?
11:31PM ( 18 hours ago )
O'Rourke fundraising remains strong, with $9.4M in 18 days
Democratic presidential candidate Beto O'Rourke says he raised $9.4 million in donations during his first 18 days of campaigning _ taking in $500,000-plus daily
2:10PM ( 1 day ago )
Adviser to comedian-candidate says Ukraine ripe for change
The thriving presidential campaign of Ukrainian comedian Volodymyr Zelenskiy may seem improbable, but his campaign adviser says the country is at the point where it needs reforms from untraditional sources
1:11PM ( 1 day ago )
General Presidential Election News
Amazon's Jeff Bezos and wife MacKenzie finalize divorce
Amazon says founder and CEO Jeff Bezos has finalized his divorce with wife MacKenzie, giving her a separate stake in the online shopping giant
4:56PM ( 53 minutes ago )
Feds support tribe's push for only whale hunt in mainland US
Federal officials are supporting a decadeslong request by a Native American tribe in Washington state to resume what would be the only authorized whale hunts in the mainland U.S.
4:56PM ( 53 minutes ago )
US stock indexes finish mostly higher after a wobbly day
Another wobbly day of trading on Wall Street ended Thursday with modest gains, nudging the market's winning streak to a sixth straight day
4:56PM ( 54 minutes ago )
AP Business
After an early rise, US stocks waver in afternoon trading
After a strong start, major US stock indexes are wavering between small gains and losses in afternoon trading on Wall Street Thursday.
3:23PM ( 2 hours ago )
Glaring US absences raise questions about relevance of G-7
Two key American officials _ U.S. Secretary of State Mike Pompeo and Homeland Security Secretary Kirstjen Nielsen _ are skipping meetings in France this week as the Group of Seven countries gather to try to find solutions to world security challenges
3:21PM ( 2 hours ago )
The Latest: SEC says Tesla CEO should face substantial fines
A lawyer for the U.S. Securities and Exchange Commission has told a judge that Tesla CEO Elon Musk should face substantial escalating fines if he keeps violating a deal with the SEC
3:19PM ( 2 hours ago )
AP Business - Economy
Senate panel backs Interior pick despite conflict allegation
A Senate panel has voted to put a former Washington lobbyist in charge of the Interior Department despite intense debate among senators over his links to former clients
3:06PM ( 2 hours ago )
US mortgage rates move little after big drop; 30-year 4.08%
U.S. long-term mortgage rates moved little this week after the key 30-year loan rate marked its steepest weekly drop in a decade the week before
1:04PM ( 4 hours ago )
CVS spreads same-day prescription deliveries to 36 states
CVS Health is expanding same-day prescription deliveries nationwide in the latest push by drugstores to keep customers who don't want to wait and are shopping online more
10:43AM ( 7 hours ago )
AP Business - Industries
Trump adviser: White House 'fully behind' Moore for Fed
The White House is "fully behind" Stephen Moore - President Donald Trump's latest choice to help lead the Federal Reserve - despite unflattering financial details about Moore's personal life that have come to light since Trump announced his decision
6:36PM ( 23 hours ago )
North Carolina GOP chair, major donor charged with bribery
The chairman of North Carolina's Republican Party and a secretive big-money donor are facing federal bribery and wire fraud charges in an effort to sway decisions by the state's top insurance regulator favorable to the donor's insurance companies
7:01PM ( 1 day ago )
IMF managing director says economy is at 'delicate moment'
IMF managing director warns that global economy is at 'delicate moment'
12:08PM ( 2 days ago )
AP Business - Financial Services
Nissan's Ghosn arrested again in financial misconduct case
Nissan ex-chair Ghosn arrested for 4th time as brief time outside detention is cut short
5:39PM ( 10 minutes ago )
Motel 6 agrees to pay $12 million to settle lawsuit
The national chain Motel 6 has agreed to pay $12 million to settle a lawsuit filed by Washington state claiming names of hotel guests were improperly provided to immigration officials for two years
5:29PM ( 21 minutes ago )
FBI rejects teen's claim to be long-missing boy
The FBI said Thursday DNA tests disproved the claim of a teenager found wandering the streets of a Kentucky town that he was an Illinois boy who disappeared eight years ago, dashing hopes that the baffling case had finaly been solved
5:28PM ( 22 minutes ago )
Germany: Mosque attack suspect sent money to French group
German police say the suspected New Zealand mosque gunman sent money to a French far-right group
5:19PM ( 30 minutes ago )
Trump says US, China 'rounding the turn' in trade talks
President Donald Trump says the U.S. and China are "rounding the turn" in a lengthy negotiation over trade
5:17PM ( 33 minutes ago )