Lael Brainard, President Biden’s nominee to function vice chair of the Federal Reserve, pledged in written remarks Thursday to make combating inflation the central financial institution’s prime precedence.
Brainard, a present member of the Fed’s board of governors, outlined the stance in prepared remarks launched forward of her affirmation listening to with the Senate Banking Committee.
“Inflation is too high, and working people around the country are concerned about how far their paychecks will go,” Brainard stated. “Our monetary policy is focused on getting inflation back down to 2 percent while sustaining a recovery that includes everyone. This is our most important task.”
Inflation hit 7% in December, reaching its highest degree since 1982, in accordance with the most recent Consumer Price Index knowledge launched by the Bureau of Labor Statistics. Americans are paying steeper costs for on a regular basis staples similar to groceries and gasoline amid provide chain disruptions and different pandemic-related issues.
Despite the inflation disaster, Brainard stated the US economic system is “seeing the strongest rebound in growth” in 5 a long time because it recovers from the COVID-19 pandemic. She famous enhancing labor situations and up to date declines within the unemployment charge.
“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 stated. “I am committed to the independent and nonpartisan status of the Federal Reserve.”
Brainard will handle the Senate panel simply days after Fed chair Jerome Powell participated in his personal renomination listening to. Powell is searching for a second four-year time period because the central financial institution’s prime official.
Senators from each events pressed Powell to element the Fed’s plan to fight 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 have to raise interest rates more over time, we will,” Powell stated. “We will use our tools to get inflation back.”
The Fed is anticipated to lift rates of interest a minimum of 3 times and dial again pandemic-era financial assist this 12 months as a part of its efforts to handle the state of affairs.
As vice chair, Brainard would play a key function in shaping US financial coverage. She was thought of a frontrunner for nomination as Fed chair, however Biden in the end chosen Powell for an additional time period.
Some Republicans have indicated they’re cautious of Brainard’s nomination to a outstanding Fed function, citing her assist for Fed motion to handle local weather change. GOP lawmakers say any climate-related motion would exceed the Fed’s mandate.