CNBC reported that U.S. President Donald Trump is considering former presidential candidate Herman Cain for a Federal Reserve governorship.The 73-year-old Cain was a former chairman of the Kansas City Federal Reserve, serving for seven years between 1989 and 1996 before leaving to focus on political activities.
Cain purportedly met President Trump at the White House on Wednesday as he was escorted by National Economic Council director Larry Kudlow. The central bank board has two vacancies available and President is said to be meeting with various candidates to fill the open positions.
Cain’s popularity surged in 2011 when he ran for president. HIs campaign was popularized by the “9-9-9” plan, which referred to the tax rates his plan would apply to personal income, federal sales and corporations.
Fed Keeps Rates Unchanged
“Patience” has been a mainstay in Fedspeak as of late and on Wednesday, the central bank elected to keep the federal funds rate unchanged, saying that it will be patient moving forward with respect to further rate adjustments.
In a statement, the Fed said it voted unanimously to hold its policy rate in a range between 2.25 percent and 2.5 percent. The markets cheered the move as the Dow Jones Industrial gained as many as 400 points following the news to keep rates static.
“In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes,” the statement said.
Furthermore, the central bank lowered its view on economic growth, changing it to “stable” as opposed to “strong.” It also said inflation gauges “have moved lower in recent months.”
The decision to keep rates flat came as the Fed didn’t show much dynamism in 2018, obstinately sticking with a rate-hiking measure with four increases in the federal funds rate. That appears to have changed given the current economic landscape, and especially in the capital markets as Fed Chair Jerome Powell is now preaching patience and adaptability.
“As always, there is no preset path for policy,” Powell said. “And particularly with muted inflation readings that we’ve seen coming in, we will be patient as we watch to see how the economy evolves.”
Powell’s latest comments late last year came as U.S. equities finished their worst year in over a decade. The Dow fell 5.6 percent, while the S&P 500 lost 6.2 percent and the Nasdaq Composite fell 4 percent.
Furthermore, December alone resulted in the Dow falling 8.7 percent and the S&P 500 losing 9 percent, making it the worst December since 1931. However, as evidenced by the latest mentions of patience, it appears the Fed is finally paying closer attention to the pulse of the markets.
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