Published: Mon, April 15, 2019
Markets | By Erika Turner

Herman Cain expected to withdraw from Fed Reserve Board of Governors consideration

Herman Cain expected to withdraw from Fed Reserve Board of Governors consideration

Republicans control 53 votes in the 100-seat Senate, and losing the support of four members means Cain would need help from Democrats, which appears unlikely. Cain declined comment on the report.

Three GOP senators - Utah's Mitt Romney, Alaska's Lisa Murkowski and North Dakota's Kevin Cramer - told The Associated Press they'd likely vote against Cain.

Economists and critics have expressed concerns about loyalists of Republican Trump serving on the traditionally nonpartisan central bank.

"These two appointments to the Fed are the worst, ill-suited appointments that the president could come up with", Pelosi told reporters, pointing out that Vice President Mike Pence said earlier Thursday that Cain and Moore share Trump's views on the economy. The White House had no comment Thursday about the growing opposition to Cain among Senate Republicans, or whether the administration plans to formally submit his nomination to the Senate.

At the time, Cain said the allegations were false but acknowledged that he'd "made mistakes" in his life.

It's possible this speculation is all wrong and that Trump will go to the mat for the former Godfather's Pizza executive, who had an active career as a right-wing talk-radio gabber in Atlanta before he went national with a 2012 presidential campaign.

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Chelsea are still reviewing video footage of the incident, in an effort to identify the other three fans involved. Chelsea has vowed to ban those responsible and three men were denied entry to the Europa clash on Thursday.

National Economic Council Director Larry Kudlow said Thursday morning that the Federal Bureau of Investigation was conducting a background check on Cain and that he was still the White House's pick, "at the moment".

"Well, I like Herman Cain and Herman will make that determination", he said. "Herman is a great guy and I hope he does well".

The president nominates members to the Fed's seven-member board of governors. "Now, thank God, Chairman Powell is there, but for him to have to deal with a politically motivated Fed - this is a really unsafe one", House of Representatives Speaker Nancy Pelosi said.

But he stressed that the White House needs to consider two factors in its nominations: the individual's background check, as well as his or her prospects of getting confirmed in the Senate. The central bank's other top policymakers head the Fed's 12 regional banks and are chosen by local boards of directors, not the president.

The expectation for this week is that the Fed will revise its predictions for next year down to two rate hikes and Powell will try to signal in his press that the Fed will be "data dependent" and more open to changing course as needed.

Central bank independence from short-term politics is seen as important to prevent influence that could lead to runaway debt and hyperinflation. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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