KEY POINTS
  • The potential nominations of Herman Cain and Stephen Moore threaten to politicize the central bank, though they would likely not have much sway over policy, said Barclays' chief U.S. economist.
  • The two appear to be more political in nature than President Trump's other nominees.
  • Cain and Moore have called for more accommodation by the Fed, in line with the White House but in contrast to their prior views.
Stephen Moore and Herman Cain

President Donald Trump's potential nominations of Stephen Moore and Herman Cain to the Federal Reserve could be the beginning of a politicization of the central bank, according to Barclays' chief U.S. economist.

"When it comes to nominees, most people that get nominated to the board, regardless of what party is in power, they tend to get nominated based on expertise, and they're largely on the fringe of politics," said Barclays economist Michael Gapen, adding they are often economists from academia, government or the private sector.