Federal Reserve Chairman Powell, who will appear at a Senate appointment hearing on Tuesday, vowed that the Fed would use tools to keep inflation from taking hold, according to pre-released testimony on Monday, and warned that the post-pandemic economy might be sluggish. A wave of economic expansion is very different.
Powell will appear before the Senate Banking Committee at 10 p.m. ET on Tuesday, and the Fed’s view on inflation is in high profile amid the policy shift. “We will use tools to support the economy and a strong labor market before inflation becomes entrenched,” Ball said, according to written testimony.
He added that in some respects the post-pandemic economy will be very different from before, and “the goals we’re pursuing will have to take those differences into account.”
In his written testimony, Ball praised the efforts of Fed oversight and financial oversight over the past four years, “We have worked hard to improve the public’s access to immediate payment, strengthen the attention and regulation of threats such as climate change, cyber attacks, and expand Analysis and monitoring of financial stability.”
The Ball case is expected to pass Congress with bipartisan support, but is expected to face tough scrutiny at a time when the Fed will embark on its sharpest policy turn in decades. U.S. inflation is at its scorching hottest in a generation, the Fed has signaled an earlier-than-expected rate hike, and a dot-plot of rate forecasts for December showed 18 officials favored raising rates from near-zero now.
Oxford Economics economists Nancy Vanden Houten and Kathy Bostijancic said the Fed’s anxiety regarding inflation has outpaced any downside risks from the Omicron outbreak.
Clarid, Fed vice-chairman, to retire early
On the other hand, Fed Vice Chairman Richard Clarida, who oversees financial oversight, has recently sparked controversy over the clever timing of buying and selling stock funds. Clarida’s office announced Monday that he will retire on Jan. 14, earlier than scheduled. two weeks. The current top candidate to succeed is Sarah Bloom Raskin, a former deputy Treasury secretary and Fed governor.
U.S. President Joe Biden has nominated Fed Governor Lael Brainard as vice chairman, and a hearing on Brainard’s appointment will begin on Thursday.
Critics say some Democrats may be questioning Powell’s stance on financial regulation, such as Senator Elizabeth Warren, who has threatened to oppose Powell’s personnel case in protest of his overly lax regulatory stance. Brainard’s stance on climate change might be the focus of questions from Republicans.
