Brainard says fighting inflation is Fed’s ‘most important’ job
ܫLael Brainard, President Biden’s nominee to serve as vice chair of the Federal Reserve, pledged Thursday to make combating inflation the central bank’s top priority.
Brainard, a current member of th🐟e Fed’s board of governors, during her confirmation hearing before members of the Senate Banking Commi♔ttee.
“Inflation is too high, and working people around the country are concerned about how far their pay👍checks will go,” Brainard said. “Our monetary policy is focused on getting inflation back down to 2% while sustaining a recovery that includes everyone. Thi💎s is our most important task.”
Inflation hit 7% in December, reaching its highest level since 1982, accordi🌼ng to the latest Consumer Price Index data released by the Bureau of Labor Statistics. Americans are paying steeper prices for everyday staples such as groceries and gas amid supply chain disruptions and other pandemic-related complications.
Despite the inflation crisis, Brainard said the US economy is “seeing the strongest rebound in growth” in five decades as it recovers from the C🍒OVID-19 p෴andemic. She noted improving labor conditions and recent declines in the unemployment rate.
“I am committed to pursuing the Federal Reserve’s congressionally mandated goals of price stability and maximum employment and to maintaining the strength and resilience of our financial system,” Brainard said. “I am committed to the independent and nonpartisan status of the Federal Reserve.”
Brainard previouslღy served as the Treasury Department’s undersecretary for international affairs. Her confirmation will require a majority vote from the Democrat-controlled Senate.
Sen. ♓Sherrod Brown (D-Ohio), chair of the Senate Banking Committee, gave Brainard a glowing endorsement during his opening💫 remarks.
“With Governor Brainard as vic♛e chair of the Fed, Americans will have someone who understands that workers – not corporations, not Wall Street – that workers create economic growth,” 🔯Brown said. “Her commitment to the success of all Americans from all walks of life in every region of the country is clear in all the work she’s done through her distinguished careers.”
Sen. Paꦺt Toomey, (R-Penn.), ranking member of the Senate Bank🥃ing Committee, was more critical.
Toomey noted that Brainard was among the Fed officials who initially referred to surging inflation as transitory. He also expressed concern about Brainard’✅s stance that the Fed should tailor monetary policy to addre🥂ss climate change.
“I’m particularly concerned that she’s advocated for the Fed to shape environmental policy through so-called ‘climate scenario analysis,’” Toomey said. “Not only does the Fed lack experti💙se in environmental matters, but there’s no reason to believe that global warming poses a systemic risk to the financial system.”
Brainard addressed the Senate panel just days after Fed chair Jerome Powell participated in his own renomination hearin꧋g. Powell is seeking a second four-year term as the central ban🎀k’s top official.
Senators from both parties pres🐠sed Powell to detail the Fed’s plan to combat inflation. Powell acknowledged inflation was a “severe threat” to the employment market.
“If we🦩 see inflation persisting at high levels longer than expected, if we h𓄧ave to raise interest rates more over time, we will,” Powell said. “We will use our tools to get inflation back.”
The Fed is expected to raise interest rates at least three times and dial back pandemic-era economic support this year as part 🎶of its efforts to address the situation.
As vice chair, B🍬rainard would play a key role in shaping US economic policy. She was considered a frontrunner for nomination as Fed chair, but Biden ultim🦩ately selected Powell for another term.
Some Republicans have indicated they are wary of Brainard’s nomination to a prominent Fed role, citing her support for Fed aꦜction to address climate change. GOP lawmakers say any climate-related acti🦹on would exceed the Fed’s mandate.