AP NEWS

A Trump dilemma: Finding a dovish GOP ally to serve on Fed

May 2, 2019
1 of 2
A television screen on the floor of the New York Stock Exchange shows the rate decision of the Federal Reserve, Wednesday, May 1, 2019. The Federal Reserve is leaving its key interest rate unchanged and signaling that no rate hikes are likely in coming months, amid signs of renewed economic health but unusually low inflation. (AP Photo/Richard Drew)

WASHINGTON (AP) — The skeptical response to President Donald Trump’s choice of Stephen Moore for the Federal Reserve has thrown a spotlight on the tough task Trump has set for himself: Finding a rare conservative ally who both favors cutting interest rates and is respected enough to win Senate confirmation.

Frustrated by the Fed’s handling of rates under Jerome Powell — his own choice to be chairman — the president tapped two outspoken political boosters to fill a pair of vacancies on the Fed’s board. One, Herman Cain, withdrew from consideration last week amid renewed scrutiny of sexual harassment and infidelity allegations that first surfaced during his 2012 presidential campaign. The other, Moore, faces rising opposition on Capitol Hill, in part because of a slew of inflammatory commentaries he wrote.