President Trump has announced he will nominate former Republican presidential candidate Herman Cain to the Federal Reserve Board. The former CEO of Godfather’s Pizza sought the Republican nomination for president in 2012 and he is also an ally of Trump.
“I’ve told my folks that’s the man,” Trump told reporters in the Oval Office according to the Associated Press.
“He’s a very terrific man, a terrific person,” Trump said. “He’s a friend of mine.”
President Trump’s decision to nominate Cain comes as his second in recent weeks after nominating economist and former campaign adviser Stephen Moore to fill another vacancy on the board. Trump has been critical of the Federal Reserve Board for not being committed to low-interest rates, stating that Fed Chairman Jerome Powell’s interest rate hikes have put a drag on the economy.
The Federal Reserve, consisting of seven members, plays a vital role in the US economy. The board holds meetings to debate and vote on interest rates that have an effect on several aspects of the economy. The two new additions, if approved by the Senate, will bring more individuals with strong conservative values onto the board.
Since Moore’s nomination, President Trump has been criticized for his decision. Opponents have argued that Moore is too political and does not have the required experience. Some news outlets have reported Moore had a lien of more than $75,000 in January 2018 for unpaid taxes and accused him of not paying alimony and child support to his ex-wife.
Now, opponents are using Cain’s departure from the 2012 Republican presidential nomination to fight back. Cain dropped out after allegations arose that he sexually harassed someone in the 1990s and that he had an extra-marital affair for more than 13 years. Cain says those allegations were false but that he has “made mistakes” in life.
Senate leaders have stated they will be the ultimate judge of whether someone is fit or not.
“They all have to go through the process and see whether or not they’re a good fit — both in terms of qualifications and just the experience and everything else,” stated Sen. John Thune, the Republican whip. “You want somebody on the Fed to be somebody who’s very knowledgeable on economic issues.”
Cain’s nomination comes after the Fed announced they will hold interest rates steady after signs of possible economic slowing.
“I was right – but we would’ve been over 4 (percent growth) if we didn’t do all of the interest rate hikes and they tightened,” stated Trump. “I said, what’re we doing here? 3.1 (percent) may be the best in 14 yrs – I’m not happy with it. We shoulda had much higher.”