President Trump is facing increasing backlash over his decision to nominate economist Stephen Moore and former 2012 presidential candidate Herman Cain to the Federal Reserve Board of Governors with some economists saying the GOP could suffer as a result.
Former Dallas Fed Advisor Danielle DiMartino Booth told FOX Business Thursday it would be a black eye for the Republican Party if they were unable to confirm Herman Cain to the Federal Reserve Board.
“Most of the people who have been circumspect and haven't even come out directly against Cain have said we are going to have to wait and see during the confirmation process what the vetting process brings to bear,” Booth told said during an interview on “Cavuto: Coast-to-Coast.”
Booth also thinks there is a high risk for Trump in nominating Cain versus Moore, even though both candidates share the president's view on lowering interest rates.
“You don't want to have someone on the Federal Reserve Board who is overly malleable and influenced by the President. You want someone who is going to think for themselves and be able to hold their own around that table,” she said.
But UBS senior vice president of investments Jim Lacamp said the Federal Reserve Board has had politics written all over it for a long time.
“You can't tell me Alan Blinder and Janet Yellen and Ben Bernanke weren't political in any way. The Federal Reserve Board and the presidents of the United States have a long history of knocking heads," Lacamp added.
Lacamp said it is not surprising to him that the president "would try to put his stamp" on the central bank by bringing two guys from non-academia and who are likely to vote to lower interest rates onto the Federal Reserve Board.
AGF Chief U.S. policy strategist Greg Valliere also told FOX Business he thinks all of this talk about the Fed losing its independence is "overdone.”
“Even if Stephen Moore does get confirmed, he would be one of 12 governors. It's not like he's the decision maker. So I think this threat has been overhyped,” Valliere added.
Senators Kevin Cramer, R-N.D., Lisa Murkowski, R-Alaska, Cory Gardner, R-Colo., and Mitt Romney, R-Utah, have already expressed their opposition to Cain's nomination.
White House National Economic Council Director Larry Kudlow said Thursday the White House is sticking by Cain as candidate for the Federal Reserve Board seat.