Cain asks Trump not to nominate him for Fed board
Herman Cain has withdrawn his name from consideration for the Federal Reserve Board, President Trump said Monday, praising the former restaurant executive whose potential nomination faced significant GOP Senate opposition.
President Trump said on April 4 he intended to nominate Cain, a one-time Republican presidential candidate, for one of two vacant seats on the Fed’s seven-member board of governors.
But Cain, who had not undergone the traditional background checks conducted before such an announcement, drew criticism on both Wall Street and Capitol Hill, in part due to sexual-harassment allegations, which he denied.
“My friend Herman Cain, a truly wonderful man, has asked me not to nominate him for a seat on the Federal Reserve Board,” Trump said in a tweet Monday. “I will respect his wishes. Herman is a great American who truly loves our Country!”
Cain declined to comment through a representative, who confirmed Trump’s account. The withdrawal marked an about-face from the position Cain stated in an interview last week, when he said he was “very committed” to following through with the vetting process and argued that the Fed needs “new voices.”
The interview occurred after four Republican senators signaled that they’d oppose Cain’s nomination, effectively sinking his chances of winning Senate confirmation if formally nominated and all Democrats in the chamber opposed him.
The GOP senators’ quick rejection of Cain marked a setback to Trump’s hopes of placing a strong political ally on the powerful Fed board, which plays a key role in monetary policy and financial regulation. The president has criticized the Fed since last summer for raising interest rates and shrinking its asset portfolio, saying the central bank was holding back economic growth and the stock market.
Fed Chairman Jerome Powell, whom Trump nominated, has repeatedly said the central bank doesn’t take political considerations into account, basing its policy decisions instead on economic data.
GOP senators during Trump’s presidency have a strong track record of approving White House nominees, from Supreme Court justices to cabinet officials. At times, some senators have signaled disapproval, knowing that the nominee still had the votes to pass. It has been very rare for senators to publicly express opposition before a candidate was even nominated.
Cain’s selection was unusual, however.
Multiple women accused him of sexual harassment, prompting him to suspend his campaign for the 2012 Republican presidential nomination. The allegations resulted in settlements paid by the National Restaurant Association, which he headed in the 1990s.
He also espoused unconventional views on monetary policy and built a record of partisan political commentary since ending his presidential campaign. A number of Senate Republicans expressed worry that his political activism and outspoken support for Trump could undermine perceptions of the Fed as a politically independent institution.
Carl Tobias, a constitutional law professor at the University of Richmond, said Cain’s withdrawal shows “the Republicans, when they can agree that someone is not qualified or not appropriate for an appointment, can block a nomination of the president.”
Herman Cain has drawn criticism on both Wall Street and Capitol Hill, in part because of sexual-harassment allegations, which he has denied.