Published: Sun, April 07, 2019
Finance | By Loren Pratt

WaPo columnist rains hell on Trump’s latest ‘quack-tastic’ Federal Reserve nominee

WaPo columnist rains hell on Trump’s latest ‘quack-tastic’ Federal Reserve nominee

On Friday morning, AEDT, Mr Trump told reporters he had "recommended [Mr Cain] highly for the Fed", describing him as "a very terrific man" and "a friend of mine".

The announcement comes weeks after Trump floated another nominee to fill an open seat on the Fed board: Stephen Moore, a former campaign adviser and distinguished fellow at the conservative Heritage Foundation.

Since taking office, Trump has reshaped the seven-member board, nominating four members to its ranks, including Fed chairman Jerome Powell.

Cain, who served as chairman of the Federal Reserve Bank of Kansas City, ran unsuccessfully for president during the 2012 election cycle. In a 2012 Wall Street Journal column, Cain argued that the Fed's policies had manipulated the value of the dollar. An Atlanta woman also said she had conducted an extramarital affair with Cain for more than 13 years.

Cain ran against former House Speaker Newt Gingrich and others in the 2012 GOP presidential primary but ultimately lost to former Massachusetts Gov. Mitt Romney, now a USA senator representing Utah.

Mr. Trump said officials are doing a background check, though he thinks Mr. Cain will be in "great shape".

At the time, Cain said the allegations were incorrect but acknowledged "he had made mistakes in my life", according to Bloomberg.

Romney was referring to Cain's proposal from his 2012 presidential campaign that would erase all existing taxes and implement a 9 percent personal income tax, a 9 percent federal sales tax, and a 9 percent corporate tax.

"I find Herman to be an outstanding person", he added. In addition to choosing Powell for the chairmanship, Trump has nominated all the current Fed board members with the exception of Lael Brainard, who was nominated by Barack Obama.

Last month, Powell said the Fed would pause planned rate increases because the US economy was slowing - and could continue to slow in part due to a prolonged Trump trade war with China.

President Donald Trump speaks in the Cabinet Room of the White House, April 4, 2019.

In recent public writings and private meetings with Mr. Trump, Mr. Moore has pushed for the Fed to reverse at least two of the four interest rate increases that it approved a year ago.

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 cut rates by a steep one-half percentage point and said the president believed that was the best course of action.

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