Herman Cain withdraws from consideration for Fed seat, Trump says
(Adds background, details)
By Trevor Hunnicutt
April 22 (Reuters) - U.S. President Donald Trump said on
Monday that businessman and former presidential candidate Herman
Cain withdrew from consideration for a seat on the Federal
Four Republican U.S. senators voiced opposition to Trump's
expected nomination of Cain in recent weeks, likely enough to
deny Cain the support he needed to secure Senate confirmation
for the post.
Economists and critics have expressed concerns about
loyalists of Trump serving on the traditionally nonpartisan
Cain has been a public advocate of many of Trump's policies,
as has Stephen Moore, a fellow at the conservative Heritage
Foundation think tank, who Trump has also said he wants to
nominate for one of two vacant seats on the seven-member Fed
Board of Governors in Washington.
But Cain had vowed to fight on in several interviews, and
had said he was under attack as a nominee because he is a
conservative. Cain's bid for president in 2012 was derailed by
accusations of sexual harassment that he has repeatedly denied.
"My friend Herman Cain, a truly wonderful man, has asked me
not to nominate him for a seat on the Federal Reserve Board. I
will respect his wishes. Herman is a great American who truly
loves our Country!" Trump said in a Twitter post.
Cain did not immediately respond to a request for comment on
Central bank independence from short-term politics is seen
as important to prevent influence that could lead to runaway
debt, hyperinflation and financial instability.
Trump elevated Jerome Powell to Fed chairman a year ago but
has frequently criticized him for the U.S. central bank's
interest rate increases.
The central bank's other top policymakers head the Fed's 12
regional banks and are chosen by local boards of directors, not
the U.S. president.
Cain, the former head of the Godfather's Pizza restaurant
chain, had served as chairman of the Kansas City Fed's board in
the mid-1990s in a role that also provides the regional bank
with input on the local economy.
The Fed in March brought a three-year rate-hike cycle to an
abrupt end as it abandoned projections for any further rate
increases this year.
(Additional reporting by Tim Ahmann; Editing by Meredith
First Published: 2019-04-22 18:25:37
Updated 2019-04-22 19:28:05
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