Published: Sun, April 14, 2019
Finance | By Loren Pratt

Cain to Withdraw From Fed Consideration

Cain to Withdraw From Fed Consideration

Representative Brad Sherman said Powell emphasized the Fed's independence and also talked about how USA debt and deficits are unsustainable in the long term.

That should be a decisive margin against Cain's confirmation. President Trump had announced his plan to nominate Cain, but that decision was met with criticism that the nomination was politically motivated due to Cain's support of Trump's 2016 presidential campaign and administration. Moore and Cain would likely be similarly beholden to Trump. He also said the Fed does not consider political pressure in its decision making, the source said.

Moore, and fellow Trump nominee Herman Cain, a former restaurant chain executive, are battling for the two vacant seats on the Fed's Board of Governors, positions that would give them a say for years on interest-rate policy and bank regulation. "We also know that moving too slowly - keeping interest rates too low for too long - could risk other distortions in the form of higher inflation or destabilizing financial imbalances", Powell said on November 28. One of the four, Mitt Romney, said "the president would be wise to nominate someone who is less partisan and more experienced in the world of economics".

The president nominates members to the Fed's seven-member board of governors and Trump elevated Powell to chairman a year ago.

Warren cited examples where Moore's economic commentary appeared in conflict with other research or Moore's earlier stances. The nominations must be approved by the Senate.

In its latest economic projections released in March, the Fed cut its forecast of the USA economic growth in 2019 and 2020, expecting a rate of 2.1 percent and 1.9 percent, respectively.

Central bank "capture" by national leaders has been blamed for a variety of economic ills, from hyperinflation to runaway debt used to finance projects in hopes of winning reelection. Another 12 members of the Federal Open Market Committee, which sets interest rates, head regional banks and are chosen by local boards of directors, not the president.

"I just don't think of it", said Mary Daly, president of the San Francisco Fed, in an appearance last week on PBS NewsHour.

"He's a fine person", Kudlow said of Powell.

"Yeah", said Moore in 2016.

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