Trump says he's recommending Herman Cain to the Fed

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"I have recommended Herman Cain – a great man, a great person – he's a friend of mine," Trump told reporters at the Oval Office. "I highly recommend it to the Fed.I have already told my colleagues that it was the man he was watching now, and I imagine that he would be in great shape. "

The announcement came a few weeks after Trump introduced another candidate for a vacant position on the Fed's board of directors: Stephen Moore, former campaign advisor and distinguished member of the conservative Heritage Foundation.

There are currently two vacant positions on the Fed's seven-member Board of Directors.

Since the beginning of his presidency, Trump has reshaped the world's most powerful central bank, already appointing four people to the Fed Board, which currently has seven members.

Trump is considering Cain for an open seat at the Federal Reserve
This includes President Jerome Powell, a former business banker, whom the President has repeatedly accused of trying to undermine him politically by raising interest rates, which, according to Trump, would slow down the economy. # 39; s economy.
The appointment of Cain could, however, propel the institution in the spotlight. The role must be confirmed by the Senate, and any verification process risks resurrecting allegations of sexual harassment and unfaithfulness that ended Cain, who ended his candidacy for the Republican candidacy.

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

Cain, the former executive director of Godfather's Pizza Inc., has previously worked at the Fed. From 1992 to 1996, he was a director of the Federal Reserve Bank of Kansas City. Each of the 12 regional federal banks has a nine-member board of directors, including local leaders.

"I find that Herman is an exceptional person, a truly exceptional person, I think he would do very well there," Trump said during a meeting with Chinese Vice Premier Liu He.

With two seats open, the president could seize the opportunity to nominate candidates who do not agree with the way Powell has steered the central bank's interest rate policy. Until now, Powell had managed to reach a consensus with his current board of directors, without dissenting opinion on a political decision since taking office in February 2018.

The president criticized the central bank for "moulting" for raising its rates four times last year. These public verbal attacks have slowed, as the Fed announced that it would suspend its rate hike this year – a fact that, according to Powell, had no influence on how the central bank's decisions in interest rate setting matter.
Trump recently complained to Powell at least three meetings this week, the Wall Street Journal reported, although his Fed chairman has taken steps to indefinitely suspend rising interest rates. interest this year and put an end to its plan to reduce its balance sheet. as recently as last week in a tweet.

In meetings with Republican senators and staff, the president allegedly criticized Powell that, without the Fed's series of rate increases, the Fed's shares would have risen and the budget deficit would not have risen. as dug, according to the newspaper. .

A person who heard the president's comments about Powell called the report "pretty rude," according to the Journal.

In a recent phone conversation, Trump told Powell: "I guess I'm stuck with you," recalled the person, according to the Journal. A spokeswoman for the Fed confirmed to CNN that Powell had a brief conversation with Trump on March 8, but declined to give more details.

On Wednesday, White House economic adviser Larry Kudlow dismissed the president's reported remarks, suggesting that they may have been wanted "with love."

"I was not in the conversation," Kudlow told reporters at a breakfast hosted by the Christian Science Monitor. "I just open the possibility." Love affection, hug on the phone. "

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