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Lael 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 the Fed’s board of governors, outlined the stance during her confirmation hearing before members of the Senate Banking Committee.

“Inflation is too high, and working people around the country are concerned about how far their paychecks will go,” Brainard said. “Our monetary policy is focused on getting inflation back down to 2% while sustaining a recovery that includes everyone. This is our most important task.”

Inflation hit 7% in December, reaching its highest level since 1982, according 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 COVID-19 pandemic. She noted improving labor conditions and recent declines in the unemployment rate.


  Inflation reached 7% in December, increasing prices of everyday staples like groceries. AFP via Getty Images Inflation reached 7% in December, increasing prices of everyday staples like groceries. AFP via Getty Images

“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 previously 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 vice 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. Pat Toomey, (R-Penn.), ranking member of the Senate Banking 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 address 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 expertise 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 hearing. Powell is seeking a second four-year term as the central bank’s top official.

Senators from both parties pressed 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 have to raise interest rates more over time, we will,” Powell said. “We will use our tools to get inflation back.”


  Gas prices in Washington, D.C. reflect growing inflation worries. EPA Gas prices in Washington, D.C. reflect growing inflation worries. EPA

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, Brainard would play a key role in shaping US economic policy. She was considered a frontrunner for nomination as Fed chair, but Biden ultimately 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 action to address climate change. GOP lawmakers say any climate-related action would exceed the Fed’s mandate.

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