Fed nominee Brainard: Fighting inflation is top priority
ABC News
Lael Brainard, President Joe Biden’s nominee for the Federal Reserve’s No. 2 spot, said Thursday that combating high inflation is the Fed’s top priority and promised the Fed could bring it down without sacrificing job growth
WASHINGTON -- Lael Brainard, President Joe Biden's nominee for the Federal Reserve's No. 2 spot, said Thursday that combating high inflation is the central bank's top priority and said she believed the Fed could reduce it without sacrificing economic growth.
Testifying at her confirmation hearing before the Senate Banking Committee, Brainard noted that inflation is “too high, and working people around the country are concerned about how far their paychecks will go.”
“We are taking actions ... that I have confidence will be bringing inflation down, while continuing to allow the labor market to return to full strength over time,” she said. Fighting inflation is “our most important task.”
Brainard’s elevation of inflation-fighting as the Fed’s top goal is notable given that she is, for now, the lone Democrat on the Fed’s board and has long been seen as inclined to keep interest rates low to boost employment, rather than to back higher rates to curb inflation pressures. Her stance reflects the abrupt pivot the Fed has recently made under Chair Jerome Powell toward making inflation-fighting its top priority.
