Kudlow on Herman Cain Pick for the Fed: He’s ‘Intimately Acquainted with Fed Operations’

MARGARET BRENNAN: Larry, the- the Fed as you know is supposed to be apolitical. Herman Cain, former presidential candidate, the president says he wants to appoint him to the Federal Reserve Board. How is he qualified for that job?

KUDLOW: Well you know, besides being a successful businessman which is very important. You know there was a time with the Fed- I started my career long time ago at the New York Fed. In those days, you had farmers on the board, businessmen and women on the board, small  bankers on- it wasn’t all economists—

MARGARET BRENNAN: Economists.

KUDLOW: Okay, so that’s one point. Second point, specifically, Herman Cain for many years was on the board of the Kansas City Federal Reserve Bank.

MARGARET BRENNAN: In more of a civic role. And- but you saw these sexual harassment allegations—  

KUDLOW: He was chairman—

MARGARET BRENNAN: —that derailed his presidential bid.

KUDLOW: Before we get to that, he was chairman of the Kansas City Fed and he is therefore intimately acquainted with Fed operations. And I want to make this generic point. People say this is political. I don’t think it’s political. There may be a policy difference. We believe, the president believes, you can have low unemployment and a strong economy as we are having- the numbers came out great on Friday, without inflation.

MARGARET BRENNAN: Is he going to pass a background check?

KUDLOW: Without inflation. Well look, he’s being vetted by the White House. He’ll be going through his hearings in the Senate Banking Committee. I- I’m not here to comment or litigate any of that. There are allegations out there but there are lots of allegations in Washington that don’t pan out. My—

MARGARET BRENNAN: Well they derailed his presidential bid.

KUDLOW: My principle point is he is qualified. He was the chairman of the Kansas City Fed. He knows a lot about the subject.

MARGARET BRENNAN: Alright, Larry Kudlow always good to have you here.

KUDLOW: Thank you, Margaret.

MARGARET BRENNAN: We’ll be right back with our panel.