In a sure sign that President Donald Trump is going in the right direction when it comes to the Federal Reserve Bank, the private central bank that controls American money whether we want it to or not, his picks to be head of the Fed and on the board got less than rave reviews from the bankers on Wall Street.
Wall Street is not happy with President Donald Trump’s plans to nominate Herman Cain and Stephen Moore to the Federal Reserve board of governors, according to a CNBC Survey published Monday.
The survey asked fund managers, economists, and strategists employed at Wall Street firms whether Moore and Cain should be confirmed. Sixty percent said the Senate should not confirm Moore and 53 percent said it should not confirm Cain.
Just thirty-four percent said the Senate should approve Moore, with 6 percent saying they were not sure or did not know. Forty-percent said Cain should be confirmed, with 6 percent saying they weren’t sure.
That’s over half of those surveyed on Wall Street not endorsing the Cain and Moore picks.
It’s a sure sign that the president may well be on the right track.
Both names are just being floated at the moment, as neither man has been officially nominated, but that much opposition demonstrates that the status quo would be upset with such new blood at the levers of control of the Fed.
That does not mean that Wall Street sorts actually believe either pick will be blocked.
Wall Street knows its influence over the president or the Senate here is limited. Fifty-one percent of respondents say the Senate will confirm Moore. Just 19 percent predict he would not be confirmed. Forty-nine percent expect Cain would win Senate approval, while 28 percent predict he would not.
There is also an acknowledgment that President Trump’s remarks about the Fed do affect policy. He assails rate hikes, they stop. After all, rate hikes at this time are bad for the economy. And the last thing President Trump wants for America is anything that is bad for the economy.