McConnell won't say if Senate would back Herman Cain for Fed

Federal Reserve Chairman Powell holds news conference following two-day policy meeting in Washington

McConnell won't say if Senate would back Herman Cain for Fed

Senate Majority Leader Mitch McConnell isn't saying whether he thinks his chamber will confirm with the Federal Reserve board to be joined by Herman Cain, casting doubt on the Republican presidential candidate prospects must him advances.

The president has said privately that he knows Cain will have trouble getting confirmed to the Federal Reserve Board, people familiar with the matter said Thursday.

"I worry that a perception that somehow politics is gaining a more important role in these decisions will undermine confidence in this nonpartisan institution", said Donald Kohn, a former Fed vice chair who spent more than 30 years at the central bank.

"I expect the White House will pull the plug on Herman and do so pretty soon", one Republican senator who requested anonymity told Newsmax.

Powell briefed House Democrats in a closed-door session at their annual retreat on Thursday evening but declined to comment on Trump's candidates for the Fed, lawmakers said afterwards.

Senate Republicans have expressed concerns over Cain's support for slashing interest rates and also worry that he would not pass muster with a background check that might force sexual harassment allegations to resurface, according to ABC. He dropped out of the race after allegations of sexual harassment and infidelity, which he denied.

"When I saw Trump's tweet, the feeling I had is that it increases the odds the Fed tightens this week to assert their independence", said Carl Tannenbaum, chief economist at Northern Trust and a former Fed economist.

Cain served as the Chairman of the Federal Reserve Bank of Kansas City's Omaha Branch, from 1989 to 1991 and as the Chairman of the Federal Reserve Bank of Kansas City from 1995 to 1996. Trump has repeatedly berated the Fed chairman, Jerome Powell, demanding the Fed lower interest rates to boost the economy.

White House economic council director Larry Kudlow said on Thursday that the president was sticking by his decision to nominate Cain "at the moment".

"I've recommended Herman Cain".

He can complain publicly, as Trump has done routinely, breaking a roughly 25-year span of presidents generally not commenting on Fed policy. "You want someone who is going to think for themselves and be able to hold their own around that table", she said.

President Donald Trump announced last week his intention to nominate Cain, a political ally and former 2012 Republican presidential front runner.

Recently, America Fighting Back criticized the 12 GOP senators who voted to reject the president's national emergency declaration to begin border wall construction.

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