McConnell won't say if Senate would back Herman Cain for Fed

Andrew Cummings
April 14, 2019

Axios quoted two senior administration officials as saying Trump wants to nominate Cain however would like to await his background check.

Additional Republican senators who have publicly expressed skepticism of Cain's nomination include Kevin Cramer of North Dakota, Mitt Romney of Utah, Cory Gardner of Colorado, and Lisa Murkowski of Alaska. The same senator noted that with all 47 Democrats expected to oppose Cain and four Republicans announcing against him, "there doesn't seem to be a path to confirmation for him".

"When I saw Trump's tweet, the feeling I had is that it increases the odds the Fed tightens this week to assert their independence", said Carl Tannenbaum, chief economist at Northern Trust and a former Fed economist.

Trump has repeatedly criticized the Fed's rate increases past year, and has reportedly even discussed firing Fed Chairman Jerome Powell months ago.

White House economic council director Larry Kudlow said on Thursday that the president was sticking by his decision to nominate Cain "at the moment".

The president nominates members to the Fed's seven-member board of governors.

Cain has run into concerns by lawmakers from both parties that, as a Trump loyalist and deeply conservative political figure, he would threaten the Fed's traditional political independence.

The White House offered no fresh comment Thursday about Trump's intentions, referring reporters to his earlier comments about Cain. Institute of International Finance President Tim Adams asked Fed Vice Chair Richard Clarida, an apparent reference to recent demands by Trump that the Fed lower interest rates.

Trump initially called Cain "a very terrific man" who would "do very well there".

Warren sent a separate letter to Cain, a former Republican presidential candidate, also describing him as unsuitable for the post. He dropped out of the race after allegations of sexual harassment and infidelity, which he denied.

Cain, 73, has been a big supporter of Trump and launched a pro-Trump political action committee - America Fighting Back PAC - in 2018.

Herman Cain is expected to withdraw his name from consideration for the Federal Reserve's Board of Governors, according to an ABC News report citing "multiple sources familiar with the matter".

Other reports by iNewsToday