Herman Cain’s candidacy pushed back into the spotlight sexual harassment allegations that tanked his 2012 presidential campaign. | Carolyn Kaster/AP Photo finance & tax Trump says he won't nominate Herman Cain for Fed seat

President Donald Trump announced Monday he would not nominate Herman Cain to the Federal Reserve, a decision he said was made at the former GOP presidential candidate’s request.

Senate Republicans had warned the White House against naming the former pizza executive and 2012 presidential hopeful to serve on the Fed's board of governors, and four were already on record in opposition to his candidacy, leaving him without a path to confirmation.


But as recently as Wednesday, Cain, a Trump political ally who has been dogged by sexual harassment allegations, said he would not withdraw his name.

“My friend Herman Cain, a truly wonderful man, has asked me not to nominate him for a seat on the Federal Reserve Board,” Trump tweeted. “I will respect his wishes. Herman is a great American who truly loves our Country!”

Cain emerged as Trump’s stated choice for an open Fed seat earlier this month, though the administration has been considering him since at least January.

My friend Herman Cain, a truly wonderful man, has asked me not to nominate him for a seat on the Federal Reserve Board. I will respect his wishes. Herman is a great American who truly loves our Country! — Donald J. Trump (@realDonaldTrump) April 22, 2019

The president’s push for both Cain and conservative commentator Stephen Moore to join the central bank comes after Trump has spent months bashing the Fed for hiking interest rates and for shrinking its bond holdings, a process that can also put upward pressure on rates.

Four of the five current Fed board members are Trump appointees, including Chairman Jerome Powell, who has received the brunt of the president’s criticism.

Cain’s candidacy pushed back into the spotlight sexual harassment allegations that tanked his 2012 presidential campaign.

GOP lawmakers had also expressed worry about the prospect of putting the businessman on the Fed, which is designed to be independent from short-term political considerations, given that he recently founded a pro-Trump super PAC.

“Do you seriously want a guy on the Fed that has a whole organization, the only purpose of it is to encourage Republicans to do whatever the president says he’d like you to do?” one Republican senator distressed about the nomination said earlier this month.

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Cain, in a post on conservative news site The Western Journal, said the reason he chose to withdraw is because it would limit his ability to speak publicly and make money.

“I was told what the ethical restrictions would be,” he wrote. “I would have to let go of most of my business interests. I could not serve on any boards. I could not do any paid speeches. I could not advocate on behalf of capitalism, host my radio show or make appearances on Fox Business.”

“Without getting too specific about how big a pay cut this would be, let’s just say I’m pretty confident that if your boss told you to take a similar pay cut, you’d tell him where to go,” he said, adding that he “started wondering if I’d be giving up too much influence to get a little bit of policy impact.”

Notably, Cain’s recent pledge to support low rates is at odds with his past statements. He spent a few years on the board of the Kansas City Fed, including as chairman, during a time when that branch of the central bank was “hawkish,” or in favor of higher interest rates to stave off inflation. The boards of regional Fed banks do not have a direct say in rate decisions, but they advise the bank president, who does.

In recent years, Cain also repeatedly cited rising rates as a welcome development and has said he supports a strong dollar. He also advocated for returning to a gold standard, in which the value of the dollar is tied directly to the supply of the precious metal, an idea rejected by almost all mainstream economists.

The Fed candidacy of Moore, who has received a slightly warmer welcome in the Senate than Cain, still faces an uncertain future over his tax troubles and a range of past controversial statements.

Senate Minority Leader Chuck Schumer said Monday that Moore’s candidacy should also be rejected.

“Herman Cain was woefully unqualified to be on the Federal Reserve and his failure to garner adequate support should not be used as a pathway by Senate Republicans to approve Stephen Moore, who is equally unqualified, and perhaps more political,” Schumer said in a statement.

“Mr. Moore, like Mr. Cain, poses a danger to the economic stability of our country,” he added. “Mr. Cain clearly saw the writing on the wall and withdrew his name from consideration; hopefully Senate Republicans will again voice their deep concerns and force Mr. Moore to do the same.”