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