Federal Reserve System

Herman Cain says he bowed out of Fed Board consideration due to pay cut

In this image, Herman Cain points a finger in the air while speaking into a microphone.
Herman Cain in 2012. Photo: Scott Olson/Getty Images

Former Godfather's Pizza CEO and 2012 presidential candidate Herman Cain's decision to drop out of the running for the Fed was largely expected, but his reason for doing so was surprising.

What's new: Cain wrote in an op-ed for the Western Journal yesterday that the decision was really about having to "take a pay cut" (Fed governors are paid $183,100 a year), go through vetting and being unable to "advocate on behalf of capitalism, host my radio show or make appearances on Fox Business."

Herman Cain withdraws from Fed Board consideration

President Trump announced in a Monday tweet that Herman Cain is withdrawing his name from consideration as a member of the Federal Reserve's Board of Governors, a week after Cain said he wouldn't withdraw.

"My friend Herman Cain, a truly wonderful man, has asked me not to nominate him for a seat on the Federal Reserve Board. I will respect his wishes. Herman is a great American who truly loves our Country!"

The big picture: Cain's potential nomination to the Fed already faced pushback from Republican senators due to sexual assault allegations, which he has previously denied. He told the Wall Street Journal last week, "I don't quit because of negative criticism. ... I don't quit because of negative attacks. And I don't quit because several senators have expressed reservations about my qualifications."

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