Trump to Nominate Herman Cain for the Fed, Stephen Moore Likely for 2nd Seat

-edited

I thought we had pretty much heard the last of Herman Cain. Apparently not.

News reports say Trump picks Herman Cain for Fed.

President Donald Trump plans to nominate former pizza chain executive and Republican presidential candidate Herman Cain for a seat on the Federal Reserve Board, Bloomberg News reported on Thursday.

Axios also earlier reported Trump has decided to choose Cain to fill one of two vacancies on the seven-member Fed board.

Trump is also considering nominating conservative commentator and longtime ally Stephen Moore to the Fed.

Trump Announce Moore on March 22

On March 22, the New York Times reported Trump Taps Fed Critic Stephen Moore for Board Seat.

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 last year. Mr. Moore blames those increases for a drop in commodity prices at the end of last year. He recently pushed the Fed to target commodity prices in setting interest rates, a view rarely advocated by economists and monetary policymakers.

“The Fed is sucking the oxygen out of the economy and has created an economically debilitating deflation,” Mr. Moore said in an email this month. “Deflation shrinks the economy. The Fed should reverse its disastrous rate hikes” of September and December.

“The one guy who gets this is Trump,” Mr. Moore added. “He told me in a meeting last month that the Fed is preventing us from staying on 3 to 4 percent growth path."

The number one requirement for the job is to do what Trump wants, and Moore promises to do just that. I suspect Cain is also on board.

To cool down the controversy of Moore, it appears Trump will tap Cain first.

Mike "Mish" Shedlock

Comments (23)
No. 1-16
Mish
Mish

Editor

Slow news day so I am headed back out for pictures

Webej
Webej

With the outbreak of the GFC, Obama spoke of credit as the life blood of the economy. It sounds different if you were to say "debt is the life blood of the economy", even though both the morning and the evening star refer to Venus.

Same goes for "oxygen". You have to love all these organic metaphors about "health" or "addiction" and such when (mis)applied to the economy. Sucking the oxygen out of the room! How about more oxygen tanks for the FIRE sector!

(finance-insurance-real estate)

Bam_Man
Bam_Man

I say "Nein, Nein, Nein!" to Herman Cain's nomination.

AWC
AWC

Sell the funny buck, and buy all the "other things." The Fed's gone full-on political.

2banana
2banana

And obama nominated pure and independent folks to the Fed Board...

Who promptly gave him $4 trillion in QE and zero interest rates for next 7.5 years...