MEDIA OR RAD CAROLINA LIBERAL
DEMS NO CONCLUSION PRESIDENT
WRITES EXCLUSIVE FOX BUSINESS
INTERVIEW FORMER PRESIDENTIAL
CANDIDATE HERMAN CAIN THANKS
SO MUCH FOR JOINING US.
>> THANK YOU, MARIA.
MARIA: BREAKING NEWS, OF
COURSE, YOU ARE TAPPED BY
PRESIDENT NOMINATED FOR A SPOT
ON FEDERAL RESERVE BOARD YOU
HAVE PULLED YOUR CONSIDERATION
BACK, DECLINING THAT, WHAT LED
TO THE DECISION HERMAN WHY DID
YOU DO THAT?
>> AFTER I LOOKED AT ALL THE
FACTORS INVOLVED TOOK ABOUT A
MONTH COLLECTED ALL THE
INFORMATION, THE STRAW THAT
BROKE THE CAMEL'S BACK WAS A
DISCUSSION THAT I HAD WITH TWO
ADMINISTRATION STAFFERS WHO
TOLD ME ALL THE THINGS THAT I
COULD NOT DO, IF I BECAME A
FEDERAL RESERVE BOARD GOVERNOR
I WOULD NOT RUN BUSINESS COULD
NOT PROCEDURE BUSINESS
INTERESTS I HAD TOBIN IN
POLITICAL I HAD TO ABOUT
POLITICALLY CORRECT ANYTHING I
SAID OR BE ANY ONE PARTISAN,
THAT IS LIKE PICKING A RACES
HOURS PUTTING IN STABLE NOT
LETTING HIM RUN DID NOT FIT
WITH WHO I AM ONE OF THE
BIGGEST REASONS ONE OF THE
OTHER BIGGEST REASONS WAS THAT
TODAY, THE NEW BOARD CEO I
HAVE MAXIMUM FLEXIBILITY FOR
WHAT I SAY WHAT I SAID, WHO I
CRITICIZED I CAN BE AS
PARTISAN AS I WANT TO, BUT IF
I AM A FEDERAL RESERVE BOARD
GOVERNOR ALL OF THAT GOES AWAY
AND I HAVE VERY, VERY, VERY
ELIMINATED FLEXIBILITY.
MARIA: YOU KNOW.
>> THOSE WERE TWO MAIN
REASONS.
>> YOU SAID, LOOK THIS IS A
BIG PAY CUT, OBVIOUSLY, THERE
IS THAT.
AND YOU HAVE BEEN SAYING THAT
RECENTLY, THEN YOU KNOW YOUR
NOMINATION LED TO THIS BIG
DEBATE ABOUT O WHO SHOULD SIT
ON FEDERAL RESERVE BOARD ONE
ALLY OF PRESIDENT TRUMP, AND
HAS BUSINESS EXPERIENCE, LIKE
YOURSELF, BUT NO FEDERAL WELL
YOU WERE ON FED BOARD A LOT OF
PEOPLE SAID BROUGHT REAL
ACTIVITY REAL BUSINESS SENSE
HAVING RUN BUSINESS IN THE
PAST, SO YOU ARE GIVING A
PRACTICAL SENSE RATHER THAN
ACADEMIC SENSE ON THE BOARD
WHAT WAS YOUR TAKE ON THE
WHOLE DEBATE THAT ENSUED AS A
RESULT OF THE PRESIDENT NAMING
YOU?
>> FIRST OF ALL, I KNOW HOW TO
BE INDEPENDENT, I UNDERSTAND
THE INDEPENDENCE OF THE
FEDERAL RESERVE BORED.
THAT WASN'T AN ISSUE IN MY
MIND IT WAS ONLY AN ISSUE IN
THE MINDS OF THOSE WHO DID NOT
LIKE MY PROFILE WHEN IT CAME
TO ME BEING ON THAT BOARD,
SECONDLY, YOU ARE ABSOLUTELY
RIGHT, COMPENSATION WAS A
FACTOR BUT I AM GOING TO TRY
TO WORK AROUND THE
COMPENSATION GAP IF I COULD
CONTINUE TO PURSUE MY BUSINESS
INTERESTS.
BUT WHEN I WAS TOLD THAT I I
COULDN'T PROCURE BUSINESS
INTERESTS AND WE HAD THIS
CONVERSATION GAP, THAT WAS THE
REAL PROBLEM.
BUT I UNDERSTAND INDEPENDENCE
I THINK AND HERE IS ONE OTHER
ONE OTHER STORY OUT THERE THAT
SOME PEOPLE WERE TALKING UP
AND THAT IS I AM NOT A
QUALIFIED.
WELL THEY DON'T KNOW ME MARIA.
THEY HAVEN'T LOOKED AT MY
BACKGROUND THEY DON'T KNOW MY
BACKGROUND GOES BACK WHERE I
STARTED OUT AS ANALYST, I HAVE
DONE A LOT OF DIFFERENT
THINGS, NOT COUNTING BEING ON
FEDERAL RESERVE BOARD KANSAS
CITY AND BEING CHAIRMAN OF
THAT BOARD AND THEY DON'T
COUNT THAT AS EXPERIENCE?
THEY DIDN'T WANT SOMEONE ON
THE BOARD THAT HAS A BROADER
VIEW OF BUSINESS AND A BROADER
VIEW OF THE IMPACT OF THE
POLICIES THE THINGS THAT THE
FED WOULD DO, BECAUSE I WOULD
HAVE BROUGHT THAT PERSPECTIVE
TO THE FEDERAL RESERVE BOARDS
OF GOVERNORS BUT IT DIDN'T
HAPPEN I RESPECT THE PRESIDENT
FOR RESPECTING MY WISHES, AND
WITHDRAWING MY NAME FROM
NOMINATION BECAUSE I WOULD
RATHER CONTINUE TO HAVE THIS
INFINITE FLEXIBILITY THAT I
HAVE TO BE ABLE TO TELL PEOPLE
THE TRUTH.
MARIA: YES.
>> TO BE PROPONENT FOR
CAPITALISM, TELL PEOPLE THE
TRUTH ABOUT THE DANGERS OF
SOCIALISM.
>> THE OTHER ISSUE, IS THIS
COMES AT A TIME THAT THE
PRESIDENT WAS -- WAS STILL,
PRETTY MUCH BASHING THE
FEDERAL RESERVE, RIGHT HERMAN?
I MEAN THE PRESIDENT HE WAS
RIGHT YOU KNOW, THE END OF
LAST YEAR CALLING FED LOCO
CRAZY, BECAUSE, THEY WERE ON
AUTOPILOTING RAISING RATES
WINDING DOWN BALANCE SLEET IN
RETROSPECT THE FEDERAL RESERVE
DID SEE, THAT THEY WERE
ACTUALLY ON AUTOPILOT IT WAS A
MISTAKE, SO THEY PIVOTED
CHANGESED STANCE THE FACT THAT
THE PRESIDENT WAS PRETTY MUCH
BASHING THE FEDERAL RESERVE,
JAY POWELL, THE SAME TIME
PERIOD, THAT NOMINATING YOU AN
ALLY, CREATED ROOM FOR THE HIS
DETRACTORS TO SAY YOU KNOW
THIS GUY IS IN A QUALIFIED,
YOU KNOW WHAT THIS IS MORE FOR
PRESIDENT TO UNDERMINE FEDERAL
RESERVE WAS THERE A LITTLE OF
THAT IN THERE.
>> THERE WAS A LOT OF THAT IN
THERE THEY DIDN'T KNOW WHAT
THEY WERE TALKING ABOUT LET'S
GO BOOK TO MOVES FEDERAL
RESERVE MADE END OF LAST WE
ARE YOE HE NOTICED A SLOWDOWN
IN JANUARY,FEBRUARY, FEBRUARY
AND EARLY MARCH, OF MOVES THEY
ARE SAYING -- BIG THING FED
DID FOR 2019, THEY ARE GOING
TO BE PATIENT.
GOOD!
I HOPE THEY REMAIN PATIENT.
LOOK AT THIS STOCK MARKET WHAT
IT DID YESTERDAY.
IT WILL RESULT THE PATIENCE OF
THE FEDERAL RESERVE.
NOW I WOULD HOPE THEY DON'T
GET NERVOUS AND I HOPE THEY
REMAIN PATIENT REST OF 2019, I
ALSO HOPE WHEN I WAS GOING TO
BRING TO FEDERAL RESERVE BOARD
THEY LOOK AT VARIABLES OTHER
THAN WAGE INCREASES TO
DETERMINE WHETHER OR NOT THEY
BELIEVE THAT THE ECONOMY IS
OVERHEATING, SO THIS YEAR IF
THEY STAY WITH THAT PATIENCE,
THAT IS GOO
THAT IS NEO
THAT IS NEWS GOOD NEWS FOR
MARKET GOOD NEWS FOR
BUSINESSES GOOD NEWS FOR
FILING REPORTS GOING INTO 2020
I HOPE THEY DON'T GET NERVOUS
STARTS DOING SOME THINGS LIKE
THEY DID LAST YEAR IN 2019.
MARIA: YOU WROTE THIS IN
JOURNAL LAST WEEK BASICALLY
SAYING FEDERAL RESERVE HAS HAD
ALL ACADEMICS ON FED BOARD THE
ACADEMICSING ARE NOT GETTING
HANDS DIRTY WORKING THE WAY
YOU ARE THAT IS WHY THEY MADE
MISTAKES YOU THINK AS RECALL
THES OF HAVING ALL XHEKZ ON
FED THAT IS WHY MAYBE THEY
MISSED MA WAS ON THE GROUND IN
ANY IN ECONOMY END OF LAST
YEAR WERE ON AUTOPILOT AS FAR
AS THE UNWINDING BALANCE SHEET
RAISING RATES?
>> YES.
AND AS YOU SAID EARLIER, THE
MERE FACT THAT I WAS BEING
CONSIDERED, HAS RAISED THE
DISCUSSION ABOUT FED POLICY
AND THE PROSPECTIVE I DON'T
SEE ON FED,IS THAT IF YOU
CHANGE A FED RATE, IT IMPACTS
ALL THE BANKS, AND THEN THE
BANKS PASS IT ON TO CONSUMERS,
PEOPLE WANT TO MAKE LOANS
PEOPLE HAVE FIXED RATE LOANS
PEOPLE HAD BEEN VARIABLE RATE
LOANS, BUSINESSES DETERMINE
THEIR BUSINESS PLANS BASED ON
THE COST OF CAPITAL.
MARIA: RIGHT.
>> THE COST OF CASH FLOW THAT
IS THE HE PERSPECTIVE, THAT I
WOULD HAVE BROUGHT BECAUSE I
HAVE BEEN THERE, I HAVE SEEN
IT FROM BEING ON CORPORATE
BOARDS I HAVE SEEN FROM IT
BEING A CEO, AND IT IS JUST TO
SAY WAIT A MINUTE DID YOU
CONSIDER THIS?
THAT IS HOW I WOULD HAVE
APPROACHED THE JOB, AND THAT I
BELIEVE IS THE WHAT MOTIVATED
PRESIDENT AND LARRY KUDLOW TO
CONSIDER SOMEONE LIKE ME
BECAUSE OF EXTENSIVE VERY
BREWED BUSINESS PERSPECTIVE,
IN TERMS OF MAKING A DECISION
THAT THE FED MAKES.
MARIA: WHAT ARE YOUR -- WHAT
ARE YOUR FEELINGS NOW, ABOUT
WHERE WE ARE IN THE ECONOMY,
WHAT THE FED'S NEXT MOVE
SHOULD BE?
IF YOU YOU WERE ON FEDERAL
RESERVE BOARD WHAT WOULD YOU
BE RECOMMENDING SAYING PAT
CUTTING INTEREST RATES HOW
STRONG IS THE ECONOMY RIGHT
NOW WHAT DOES IT MEAN?
>> I WOULD BE RECOMMENDING
THAT THEY REMAIN PATIENT.
THEY ALREADY MADE THAT
DECISION.
>> YEAH.
>> DON'T GET NERVOUS, REMAIN
PATIENT, FOR THE FIRST SIX
MONTHS OF THIS YEAR, AND
EVALUATE THE RESULTS.
WE ARE STILL ON A ROLL WHEN IT
COMES TO THE MARKETS,
PROSPERITY GROWTH, LET'S SEE
WHAT HAPPENS IN THE FIRST PART
OF THE YEAR.
MARIA: YEAH LET'S SEE WHAT
HAPPENS IN THE FIRST PART OF
THE YEAR HERMAN ALSO GOING
INTO 2020, BECAUSE YOU'VE GOT
AN ECONOMY THAT A LOT OF
PEOPLE ARE QUESTIONING, JUST
AT TIME WHEN ECONOMY IS MOST
IMPORTANT FOR THE PRESIDENT'S
REELECTION NOW WE KNOW FORMER
VICE PRESIDENT JOE BIDEN
EXPECTED TO ANNOUNCE TOMORROW
THE FORGIVING BATTLE HEATING
UP REPUBLICAN DONORS IGNORED
PRESIDENT TRUMP IN '17 ARE
APPARENTLY READY TO GO ALL IN
TO GET HIM REELECTED, HE HAS A
DONOR, BACKDROP HERE, THAT IS
QUITE STRONG, AS HE CONTINUES
RAISING MONEY, WHAT ARE YOUR
THOUGHTS ABOUT THE FIELD
YOU'VE GOT BIDEN COMING IN
BERNIE SANDERS SAYING YEAH,
ANYBODY SHOULD BE ABLE TO VOTE
IF YOU ARE AMERICAN, EVEN IF
YOU ARE ARE A MURDERER, HE
EVEN IF YOU ARE BOSTON BOMBER.
>> BERNIE SANDERS HAS BEEN
CRITICIZED FOR A LOT OF
THINGS.
AND I THINK THIS THING ABOUT
LETTING FELONS CRIMINALIZE HE
BOMBERS VOTE CATEGORIZE AS
PURELY CRAZY THAT IS A CRAZY
IDEA NOW AS FAR AS BIDEN
COMING IN COME ON IN, JOIN THE
PARTY.
THEY HAVE GOT NEARLY 20 PEOPLE
RING, BUT HERE IS THE THING.
THE DEMOCRATS ARE GOING TO TRY
TO GET THE INTO THE CHAMBER TO
TRY TO INFLUENCE THE FED TO
RAISE RATES WHEN THEY MAY NOT
NEED TO RAISE RATES, BECAUSE
THEY DO NOT LIKE ABOUT THIS
PROSPERITY THEY DO NOT LIKE
THE RECORDS THAT THE STOCK
MARKET IS SETTING THEY DO NOT
LIKE THAT!
THEY DON'T TALK ABOUT IT, AND
THEY DON'T LIKE IT AND THEY
ARE GOING TO TRY TO PUT SOME
NOISE PRESSURE ON FED THE END