Fed ‘most important task’ is to control inflation, says Brainard

Controlling inflation, which has skyrocketed for nearly 40 years, is the “most important task” the Federal Reserve is currently facing, Lael Brainard said in a statement to the Senate on her candidacy to run for vice president. US Bank.

“We are seeing the strongest recovery in growth and the decline in unemployment since any other recovery in the last five decades,” Brainard said in comments to the Senate Banking Committee on Thursday. “But inflation is very high and workers across the country are worried about how much their wages will last. Our monetary policy is focused on getting inflation back to 2%, while maintaining an all-inclusive recovery. This is the most important thing.” our duty.

Brainard is scheduled to begin her deposition at 15:00 (GMT) at a meeting that could mark the start of a broader and potentially tough party struggle over the composition of the Fed’s seven-member board.

Only four of those seats have been filled so far, and Biden’s pending appointments, including the post of second vice president overseeing the financial regulations, could promote what he and his Democratic supporters believe should be one. greater role of the Fed in climate issues and a tougher approach to Wall Street.

Brainard, a Democrat first nominated to the Fed in 2014 by then-President Barack Obama, would be a key player in that effort.

As vice president of the Fed, he often voted against the measures taken during the administration of former President Donald Trump and under Fed President Jerome Powell to relax the supervision of major banks. He called on the Fed to urge financial companies to raise more funds; in Europe.

Brainard’s prepared remarks came close to the monetary policy scenario Powell used in his hearing on Tuesday, when he said the Fed would act as required with higher interest rates and other measures to ensure inflation would return to its current high. at the 2% target.