Trump says Herman Cain has withdrawn from consideration for Fed seat

Herman Cain

Herman Cain

Analysts have speculated for weeks that Cain would bow out after four Republican senators publicly announced they would not support his nomination, and an alleged former mistress threatened to "identify certain parts of Mr. Cain's body" to the Senate Banking Committee if he didn't withdraw his name from the running. A lien of more than $75,000 was filed against him in January 2018 for unpaid taxes.

Central bank independence from short-term politics is seen as important to prevent influence that could lead to runaway debt, hyperinflation and financial instability. Cain's comment, in an interview with Fox News, was made after an Atlanta woman came forward again with allegations of an extramarital affair that ended his White House run.

"Mr. Moore, like Mr. Cain, poses a danger to the economic stability of our country", Schumer said in a statement.

Trump elevated Jerome Powell to Fed chairman a year ago but has frequently criticized him for the US central bank's interest rate increases.

"There were so many things about (Cain) that were red flags", including his lack of understanding of monetary policy, said Diane Swonk, chief economist at Grant Thornton and longtime Fed watcher.

Like Trump, both Moore and Cain believe that returning to the gold standard would be better for the USA economy than the current fractional reserve system under the Federal Reserve.

Cain previously served multiple positions within the Kansas City Federal Reserve between 1989 and 1996.

"Donald Trump thinks he can populate the USA government the way he picks golf partners at Mar-a-Lago", National Organization for Women President Toni Van Pelt said in a statement. He was a CNN contributor from 2017 until last month. Trump has contended that those rate hikes hurt the stock market and were unnecessary because there was no inflation threat.

The central bank's other top policymakers head the Fed's 12 regional banks and are chosen by local boards of directors, not the USA president.

The Fed in March brought a three-year rate-increase cycle to an abrupt end as it abandoned projections for any further rate increases this year. That rate, in turn, affects everything from mortgage rates to the interest rate on auto loans and the interest paid on savings accounts. "And I don't quit because several senators have expressed reservations about my qualifications", Cain told the Wall Street Journal on Wednesday. Many economic historians argue that the gold standard, which fixes the dollar's value to a specific amount of gold, worsened the Great Depression.

Cain rode to fame on his slogan-friendly "nine-nine-nine" tax proposal, which would set a flat income tax of 9 percent, along with a national sales tax of 9 percent and a 9 percent corporate tax.