Biden’s nominee for Fed vice chair Lael Brainard will tell Congress, high inflation This is the Fed’s “most important task” as it moves to tighten monetary policy.

“Inflation is so high that working people across the country are concerned about how far their paychecks can go,” Fed Governor Brainard said in prepared remarks ahead of Thursday’s Senate Banking Committee confirmation hearing.

“The focus of our monetary policy is to bring inflation back down to 2 percent while maintaining a recovery that includes everyone. That is our most important task,” she added.

If confirmed by the Senate, Brainard, 60, would become the second in command After a steady rise in U.S. economic policymaking, he served at the Federal Reserve, including under former President Barack Obama as a senior Treasury official for international affairs, and served on the Fed’s board for nearly eight years.

The central bank is moving quickly to tighten monetary policy after considering inflation and the risks it poses to the economic recovery late last year. During Tuesday’s confirmation hearing, Federal Reserve Chairman Jay Powell warned that high inflation is “serious threat” to the labor market and the prospect of a long-term economic expansion.

Brainard is generally seen as dovish on monetary policy, but her testimony suggests she is taking a more aggressive approach to fighting inflation. In her opening remarks, she will also cite her international experience to underscore her determination to eliminate excessive price increases.

“In some foreign countries, I have seen firsthand how high inflation hurts workers and families, especially the most vulnerable,” she would say.

The consumer price index rose 7% from a year earlier last month, up from 6.8% in November and the biggest gain since June 1982.

Fed officials have He expressed support For three rate hikes next year, they have accelerated the pace of ending their massive bond-buying stimulus. The Fed’s main policy rate is now widely expected to “raise” in March and the $9 trillion balance sheet will start shrinking later this year.

Brainard is expected to face tough questions, especially with Republican lawmakers worried that she will lead what Sen. Bill Hagerty of Tennessee calls a Biden-appointed “activism bloc” that will sideline Powell and Imposing the Democratic policy agenda on the Fed.

Brainard tried to allay that concern in her speech. “I am committed to the independence and nonpartisanship of the Federal Reserve. If confirmed, I look forward to supporting Chairman Powell in fulfilling the role assigned to the Fed and promoting transparent communication and accountability to you and the American people,” she said.

While Brainard is broadly aligned with Powell and other FOMC members on monetary policy-related issues, she has a unique voice on central bank regulation.

During her tenure at the Fed, she took a tougher stance than her colleagues on how Wall Street should be regulated, opposing more than 20 votes on rule changes to ease regulation of the largest financial institution.

That won her plaudits from progressive Democrats, who have been lobbying the Biden administration for months to replace Powell with Brainard.

Her efforts to strengthen guidelines on how banks should serve disadvantaged communities have also boosted her reputation among members of Biden’s party, and she has also pushed the Fed to be more active in incorporating climate-related financial risks into its oversight. .