Longtime observers of the U.S. Federal Reserve are aghast at President Donald Trump’s plan to place Stephen Moore and Herman Cain on the central bank’s Board of Governors. Many worry that Moore and Cain are unqualified and too political, thus risking the Fed’s independence. Such thinking ignores the fact that the Fed suffers from too much groupthink. In that aspect, Moore and Cain can change the central bank for the better.
To understand why Moore and Cain could be a breath of fresh air, we first need to detail just how broken the role of Fed Governor has become.