Now the "pizza man" outgrows success
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The US president appoints Herman Cain to the governing body of the US Federal Reserve. The former head of a pizza chain has made several headlines – and must fulfill a specific contract for Trump.
BErman Cain was President of the United States. At least readers of your 2011 autobiography may come to that conclusion. Cain, who then ran as a Republican presidential candidate, describes how he takes the oath as the 45th president in January 2013.
Although Cain, however, at the polls was still ahead, but the trip to the White House came to a sudden end. In 2012, the Republican dragged his candidacy to the US presidential prison after allegations of sexual harassment – Cain has always rejected the allegations.
The 45th President of the United States became known a few years later as Donald Trump. But Cain could now help him to a position of prestige. Trump wants to appoint businessman Cain to a position on the governing body of the Federal Reserve. The seven-member board determines the key interest rates.
With the 9/9/9 plan, he wanted to rebuild the tax system
Spicy in the nomination: Cain collects donations for political ends – more than half of which have already flowed for re-election to Trump. The president calls Cain "friend."
Cain had a remarkable career, associated with many defeats in politics and some nicknames. In 2000, Cain, who likes to talk about himself in the third person or to call himself "Herminator," asked for the presidency, but withdrew his candidacy and supported editor Steve Forbes. Four years later, he ran for the Senate seat in Georgia – and he failed again.
For excitement, Cain makes several and various curious suggestions. His best known is the so-called 9/9/9 plan, with which he wanted to radically rebuild the US tax system. Income tax, VAT and corporate tax must be uniformly set at nine percent. Experts criticized the proposal at the time: 9/9/9 sounded more like the price of a pizza – a nod to his job as head of the fast food chain Godfather's Pizza.
Trump is playing safe
As a businessman, things were better for Cain. After going through Coca-Cola and the Pillsbury food company, he rescued Godfather's Pizza from bankruptcy and took over the chain two years later.
The monetary policy line of "Pizza-Man" Cain, however, is not very clear. In an interview with Fox Business Networks in February, its statements could be considered both for and against additional increases in interest rates. In the 1990s, the 73-year-old man worked for the Fed branch in Kansas City.
Trump has severely criticized the Fed in recent months. Because of his tighter monetary policy, he declared the US central bank "mad" and called it "ridiculous." Trump himself had appointed Fed Chairman Jerome Powell a year ago to head the Central Bank.
Recently, however, the central bank signaled a longer interest rate drop, given the uncertain economic outlook, having raised its prime rate four times last year. It is in the range of 2.25 to 2.5%.
Trump pledges low interest rates because they allow companies to make cheap loans and grow. The US president likes to boast of good numbers and therefore can not afford a downturn in the economy. However, a weakening threatens when the Fed attracts interest rates.
To avoid this, Trump now obviously plays it safe. Besides Cain, he proposes for the second wave also his longtime companion, Stephen Moore. What policy the Fed directs in the future will soon depend on "Pizza Man" Cain.