- President Donald Trump said he will appoint Herman Cain to the Federal Reserve Board.
- Cain is best known as the former CEO of Godfather’s Pizza and the 2012 GOP presidential candidate who developed the so-called 9-9-9 tax plan.
- Cain dropped out of the race in 2012 after reports that he settled two sexual-harassment lawsuits.
- Cain would be Trump’s second pick for the board in the past month, following the conservative economist Stephen Moore.
President Donald Trump told reporters that he selected Herman Cain, the 2012 Republican presidential candidate and former CEO of the Godfather’s Pizza restaurant chain, to the Federal Reserve Board.
“I’ve recommended Herman Cain. He’s a very terrific man, a terrific person. He’s a friend of mine,” Trump said. “I have recommended him highly for the Fed. I’ve told my folks that’s the man.”
It was reported earlier in the day that Trump had told advisers that Cain would be nominated for one of the top jobs at the central bank but was waiting on the former businessman’s background check before making the announcement. Cain was rumoured as a candidate in January.
Cain was the chairman of the Federal Reserve Bank of Kansas City’s Omaha branch from 1989 to 1991 and the chairman of the entire Kansas City Fed in 1995 and 1996. Directors of the Fed’s 12 branches are typically businesspeople from the district rather than economists steeped in monetary policy.
Beyond his Fed role, Cain was the CEO of Godfather’s Pizza and the National Restaurant Association.
As a Republican presidential candidate in 2012, Cain was perhaps best known for his 9-9-9 tax plan calling for a simplified tax code with a 9% personal income tax, a 9% federal sales tax, and a 9% business-transaction tax.
But Cain was dogged by reports that two women received settlements after accusing him of sexual harassment during his time at the National Restaurant Association, and he eventually dropped out of the race. Cain denied the allegations.
The board seat would be subject to Senate approval, so there is a good chance that the allegations would come up in a confirmation hearing.
Cain would also be the second board nomination in the past month: Trump tapped the conservative economist Stephen Moore for a seat on March 22.
While Moore’s nomination is moving ahead, there have been numerous questions about the economist’s repeated attacks on the Fed, his personal life, his track record as a forecaster, and his basic knowledge of monetary policy.
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