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"We
are seeing the strongest rebound in growth and decline in
unemployment of any recovery in the past five decades," Brainard
said in comments to be delivered to the Senate Banking Committee
on Thursday. "But inflation is too high, and working people
around the country are concerned about how far their paychecks
will go. 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.
Brainard is scheduled to begin her testimony at 10 a.m. EST
(1500 GMT) in a session that could mark the start of a broader
and potentially bitter partisan contest over the make-up of the
Fed's seven-member governing board.
Only four of those seats are filled right now, and pending Biden
appointments, including for a second vice chair's slot
overseeing financial regulation, could advance what he and his
Democratic supporters feel should be a bigger Fed role on
climate issues and a tougher hand with Wall Street.
Brainard, a Democrat first appointed to the Fed in 2014 by
then-President Barack Obama and confirmed at the time by a 61-31
vote, would be a prominent player in that effort.
As a Fed governor she was a frequent dissenting vote against
steps taken during former President Donald Trump's
administration and under Fed Chair Jerome Powell to loosen
oversight of the largest banks; called for the Fed to require
financial firms to set aside more capital; and worried that Fed
officials were behind European central bankers in understanding
how climate change might effect the macroeconomy and financial
system.
Republican senators have flagged a potential fight to come: at
Powell's own confirmation hearing this week one Republican
senator asked whether he risked being outnumbered if Brainard is
confirmed along with the other expected Biden appointments to
the Fed's board. A majority vote of the Senate, where Democrats
exercise narrow control, is required to confirm Brainard to the
vice chair position.
Brainard's prepared remarks stuck close to the monetary policy
script used by Powell at his hearing on Tuesday, when he said
the Fed will act as needed with higher interest rates and other
measures to be sure inflation returns from its current high
level to the 2% target.
(Reporting by Howard Schneider; Editing by Paul Simao)
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