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Mum on Senate support for Herman Cain for Fed

14 April 2019

White House economic adviser Larry Kudlow said on Thursday he has confidence in Federal Reserve Chairman Jerome Powell but that President Donald Trump intends to proceed with plans to name a controversial partisan to the US central bank's board of governors. "As to how he's doing in the process, that I don't know".

White House economic adviser Larry Kudlow said on Thursday that he has confidence in Federal Reserve Chairman Jerome Powell and believes he will turn into a good central bank chairman. "We as House Democrats have always said the Fed should be determining the rates, not politicians".

"Does that mean meddling in the decisions of the Fed?"

The nomination of moore has struck criticism that he is unqualified and politically focused to get a Fed board chair. Mitt Romney (Utah), Lisa Murkowski (Alaska) and Cory Gardner (Colo.) - in announcing opposition to Cain's appointment to the Fed.

Controversy over Cain's possible nomination, as well as that of economic commentator and Trump supporter Stephen Moore, continued on Thursday. Senate Majority Leader Mitch McConnell on Thursday withheld comment on whether he would support Cain, saying he will wait to see "who is actually nominated".

Cain has run into concerns by lawmakers from both parties that, as a Trump loyalist and deeply conservative political figure, he would threaten the Fed's traditional political independence.

Some argue that the only impact Trump is having on the Fed is to make the central bank more likely to hike since the Fed doesn't want to appear to have lost its independence from politics.

Trump initially called Cain "a very terrific man" who would "do very well there".

At the time, Cain said the allegations were false but acknowledged that he'd "made mistakes" in his life.

Asked about the controversy over the usually staid Fed, including statements by Cain and Moore in mainstream and social media, St. Louis Federal Reserve bank President James Bullard said the institution tends to "convert" people pretty quickly to its technocratic methods.

He has also said he changed his mind about the gold standard and advocated tying Fed policy to a commodity index, which he said former Chairman Paul Volcker used to tame inflation. The real problem here is that Moore and Cain are "transparently partisan" hacks.

Mum on Senate support for Herman Cain for Fed