Trump is Said to Select Herman Cain for Federal Reserve Board Seat

I’m completely neutral on this selection and it’s obviously partly politically motivated but I was surprised when I saw his resume. He’s super old but if this was 20 years ago (before he got into politics) his background would be fine for this nomination. Plus how many black Fed Reserve Board members have there ever been? They’ve almost been exclusively white.

Do you think his political runs discount him or do you think his age does?

 

I think his 9-9-9 plan proves he doesn't know basic macroeconomics.

 

Republicans are allowed to sexually harass women, in fact, it's required to be a member.

 

Why did you even bring in age and political runs?

What do you think of his simple 999 plan and going back to the gold standard? Neutral on those?

 

[Premium Post]
You are aware that the Obama's failed policies (higher taxes, more regulation, climate change fantasy costs) forced the Fed to maintain close to 8 years of 0% interest rates, several rounds of quantitative easing (money printing), and massive fiscal stimulus, aren't you? Aren't you? Maybe you weren't aware of that, which led you to accusing Trump of exactly what Obama's team did. Oh well, you learned something today and now are a little smarter than you were when you posted the words above. And that counts as a win!

GOOD DAY

 

He was chair of the KC Fed bank twice and deputy chair once.

So you are saying his political run discounts him? A lot of politicians put out a bs I will cut taxes plan to run on. Does him pushing that negate his entire career?

 

The fed had to deal with GWB's mesz which included cheap.credit.

Where were they supposed to move interest rates?

 

Looks like he held that role concurrently with his job as CEO of Godfather's Pizza. It sounds impressive, but how serious an engagement is this if you can do some CEOing at the same time?

 

I think the 999 was a lower your taxes gimmick and the gold standard is outdated. Like I said if you had looked at his resume 20 years ago would you have problem with him? Which is before his political aspirations and I firmly believe people running for office say and do stupid things to please voters but that’s an aside.

Can you play the imaginary game and do that and tell me what your opinion is? The only reason why I am asking this is because people are acting as if he is completely unqualified.

And I bring age into it because he’s 73 and that’s old for a position where the term is 14 years I think.

Edit and yes the gold standard is a relic of the past that people want to bring back because they think it will fix our budget deficits and loose money for whatever reason.

 

Do you think people who hold these opinions have a solid grasp of how fiscal and monetary policy works?

 

[Ultra premium retort]
So you’re telling me, despite Trump’s tax decrease and increased government spending, we need to keep rates lower in order to grow the economy?

 

I'm no economic expert but isn't that exactly how bubbles burst?

Pump up the economy with low interest rates to artificially inflate investment but when market demand doesn't merit the investment, the bubble burst?

 

He’s clearly a “yes man” in order to keep the economy juiced.

Most of the policies of government spending/borrowing/rock bottom rates that conservatives “hated”under Obama are being continued under these same conservatives.

 

I

It made at least pragmatic sense under Obama due to the recession

 

Generally they are trash, but I’m willing to give Cain a chance since has had multiple stints in high level roles with the KC Fed....even if it was 25 years ago lol.

People wanting the gold standard generally seem to conflate our massive budget deficits with our ending of the gold standard. Nothing shows this to be true.

 

Mr. trump wants a guy on the Fed who will cut interest rates, which are already incredibly low and have been for years now. He hates the fact that the Fed is traditionally an independent, non-political body and wants someone in his political camp on the Fed who will do what he says. It's dangerous. Why? If the nation falls into a recession, or faces something much worse, a financial crisis like we faced in the mid-2000's, the Fed essentially will be helpless to respond in the traditional way, by cutting interest rates.

Rates should have started creeping up years ago, after the economy began a strong recovery under President Obama, when it wouldn't have had a significant negative impact on the economy, in my opinion. Then, if America fell into a recession, something that is inevitable (one only has to have a rudimentary knowledge of history to know this), the Fed would have the means to juice up the economy by cutting interest rates. Today, it's hard to cut interest rates if they are near zero, leaving the Fed without one of its most powerful weapons to pull a nation in recession out of it. In my humble opinion.

I don't give a damn about what "color" the man or woman trump nominates might be. I want the most highly qualified, least controversial nomination, and there are highly qualified Black Americans, if that's an issue for some, who could be nominated. Black Americans without the checkered past of Mr Cain. Black Americans of sterling character and deep experience. Instead, trump nominates one of the most controversial Black nominees possible. Typical of the "man," and not what the country needs. It is not America trump cares about. What he cares about is Donald J. trump, his family, his personal "fortune," and staying out of jail. In my opinion. America and the American people are far, far down his "list."

 

There is no reason to raise rates if inflation is calm and if the economy isn’t growing at a rapid pace. The economy clearly couldn’t handle and didn’t need the last rate hike.

 

Everyone currently on the board is either a lawyer or has a PhD in economics, all from prestigious universities. Plus some impressive career experience in financial firms or other finance-heavy organizations. Cain has a good resume, including demonstrated leadership roles. But his education is in IT and his business career has been at the retail end of the value chain. I respect his career and successes, but it is not the right sort of preparation for the kind of macro-economic policy decisions that the Fed is responsible for. You can put one guy like him there for the sake of diversity of opinion (diversity from his retail experience, not his blackness, btw), perhaps, but given the other bright idea of appointing Stephen Moore (who has inappropriate experience for similar reasons) it doesn't look like that's the objective here. So, short version, I don't even care about his tax plan and his political efforts; he is not a good pick for the Fed.

 

Really? The "economy couldn't handle it?" I look around and don't see at all what you are apparently seeing, Robbie. I see an economy damaged by trump's bizarre fixation with starting trade wars, whether it's with China or with Canada. I see an economy doing well despite the continued roller coaster of trump's verbiage, changing day to day, hour by hour. I see an economy that was doing well and growing under President Obama and didn't need the massive tax cuts for big business that trump and a GOP controlled Congress pushed through, tax cuts producing a massive budget deficit, a massive budget deficit far more dangerous for this country than a quarter point interest rate hike.