Criticism mounts of Trump pick for U.S. Federal Reserve

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

Opposition by 4 Senate Republicans may sink Herman Cain's chance to win seat on Fed

Some Senate Republicans have voiced concerns over Cain's support for slashing interest rates, echoing a call by Trump. Cain's bid for the White House in 2012 came to a halt after two women claimed Cain sexually harassed them when they worked for the National Restaurant Association, where Cain was president and CEO. The people in the session provided descriptions of Powell's remarks on the condition of anonymity. Trump's trade war with China is likely playing a role in worsening the slowdown that was already underway overseas. "The Fed is a creation of the U.S. Congress by statute. We also know that moving too slowly - keeping interest rates too low for too long - could risk other distortions in the form of higher inflation or destabilizing financial imbalances", Powell said on November 28.

Earlier Thursday, House Speaker Nancy Pelosi said elevating Cain and Moore to the Fed would risk politicizing the nation's central bank and endangering the economy.

Earlier in the day, New York Representative Hakeem Jeffries, a member of the Democratic House leadership, said that there's "general concern" in the party about whether Trump understands the need for Fed the independence and whether president is trying to pressure the central bank for lower interest rates ahead of the 2020 election. The nominations must be approved by the Senate.

But while economists don't like Trump's Fed bashing, there are some who are starting to agree with the president that it's time for the Fed to hit pause on the rate hikes.

Central bank independence from short-term politics is seen as important to prevent influence that could lead to runaway debt and hyperinflation. "He's not a political person in any way", she said. "You want someone who is going to think for themselves and be able to hold their own around that table", she said.

Kudlow noted the Fed was independent but said that would not stop him and others from weighing in on its activities. "That doesn't mean we can't express our opinions periodically".

One of President Donald Trump's pick for the Federal Reserve Board, Stephen Moore, had to backtrack on a statement about his support for the gold standard after CNN host played back multiple clips of him contradicting himself.

"Yeah", said Moore in 2016.

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