Trump said the 2012 Republican presidential candidate asked to be withdrawn from consideration.
"My friend Herman Cain, a truly wonderful man, has asked me not to nominate him for a seat on the Federal Reserve Board," Trump tweeted. "I will respect his wishes. Herman is a great American who truly loves our Country!"
The move came after Cain lost the support of at least four Republican senators, dealing a blow to any chances he could be confirmed. With 53 Republicans in the Senate, he could only afford to lose three of their votes.
Cain ran for the 2012 Republican presidential nomination as part of the Tea Party. He suspended his campaign in December 2011 after two women accused him of sexual harassment and misconduct in the 1990s while he was CEO of the National Restaurant Association.