Senate expected to confirm Brainard to be Fed vice chair

Federal Reserve governor Lael Brainard is expected to be confirmed to the Fed’s no. 2 role on Tuesday, rising in the leadership ranks as the central bank attempts to rein in the highest inflation in 40 years without wreaking havoc on the economy.

Brainard, who has been on the Fed board since 2014, is slated to be the first of Biden’s Fed nominees to be confirmed by the full Senate. She was also the only other serious contender for Fed chair.

Brainard has been the Fed’s leading voice for tighter oversight of Wall Street, opposing policies that loosen rules put in place to safeguard the financial system after the Great Recession. She has also warned about how climate change can hinder economic activity, and how big banks’ exposure to climate-related risks could threaten the broader financial system.

“I am committed to putting working Americans at the center of my efforts at the Federal Reserve. This means getting inflation down at a time when people are focused on their jobs and how far their paychecks will go,” Brainard said when she was nominated in November. Votes are expected later this week on three of Biden’s other picks, including Jerome Powell, whom Biden has tapped for a second term as Fed chair.

Biden has also nominated economists Lisa Cook and Philip Jefferson to open seats on the Fed board. Cook, an economist at Michigan State University, would be the first Black woman on the Fed board. Her work has focused on macroeconomics, economic history, international finance and innovation, particularly on how hate-related violence has reduced U.S. economic growth.

Jefferson, an economist at Davidson College, would be the fourth Black man appointed to the board. His research has focused on inequality, how business cycles affect poverty rates and the role of education as a shield against unemployment.