FILE PHOTO: U.S. Federal Reserve Chairman Jerome Powell holds a news conference following the two-day Federal Open Market Committee (FOMC) policy meeting in Washington, U.S., March 20, 2019. REUTERS/Jonathan Ernst/File Photo/File Photo
WASHINGTON (Reuters) – White House economic adviser Larry Kudlow said on Thursday that he has confidence in Federal Reserve Chairman Jerome Powell and believes he will turn into a good central bank chairman.
At an event sponsored by The Hill, Kudlow also said the White House is sticking by Herman Cain as a candidate for a Federal Reserve Board seat “at the moment.” President Donald Trump wants him to go through the process despite allegations of misconduct that have come up against him, Kudlow said.
Trump and Kudlow have both been critics of the Fed’s policies under Powell, who Trump nominated for the top U.S. central banking job.
Kudlow repeated that he disagreed with the Fed’s most recent interest rate hikes. He opined that there may not be future hikes in his lifetime and said the differences between the Fed’s world view and the Trump administration’s world view were not as different as they are sometimes portrayed.
Kudlow noted the Fed was an independent central bank and said the Trump administration aimed to keep it that way. That did not mean that he and others would not continue to share their opinions, he said.
Reporting by Jeff Mason; Editing by Jeffrey Benkoe