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Inflation in the United States reached 7% in 2021, the highest in nearly 40 years, according to figures released Wednesday.
Lael Brainard, in front of President Joe Biden, in Washington on November 22, 2021.
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“Inflation is too high,” warned the appointed vice president of the US central bank (Fed), Lael Brainard, stressing that slowing it “while maintaining a recovery that includes everyone” is the priority of the monetary institution.
“Inflation is too high and workers across the country are worried about what they will be able to pay with their wages,” Lael Brainard is expected to say Thursday during his confirmation hearing before the Senate Banking Committee, according to his text published Wednesday.
Inflation in the United States reached 7% in 2021, the highest in nearly 40 years, according to the CPI index also released on Wednesday. “Our monetary policy is focused on reducing inflation to 2% while maintaining a recovery that includes everyone. This is our most important task, ”she will emphasize again.
Act in consequence”
“Today, the economy is making welcome progress, but the pandemic continues to pose challenges. Our priority is to protect what we have straightened out and to support a full recovery ”, will further indicate the future number 2 of the powerful US Federal Reserve.
The Fed is in fact preparing to perform a subtle balancing act, by raising its key rates to stem inflation, without, however, slowing the economy too much, which could jeopardize the recovery of the labor market. Fed Chairman Jerome Powell, who was appointed by Joe Biden for a second term and was heard in the Senate on Tuesday, pledged to act “accordingly” if inflation persists in the second half of this year, preparing the minds for a potentially incisive rate hike.
Lael Brainard, who has been on the Fed’s board of governors since 2014, is a monetary “dove”, in favor of an accommodative policy, as opposed to the “hawks”. Now the only Democrat, she has sometimes taken a stance against her colleagues, especially on banking regulation issues, of which she is a staunch supporter.
Joe Biden had, on November 22, reappointed Jerome Powell at the head of the Fed, offering the place of number two to Lael Brainard, who was supported by the left wing of the Democrats. She will replace Richard Clarida, whose term expired on January 31, but who announced his resignation on Monday, and will leave his post on Friday. He recently found himself under fire for stock transactions carried out at the start of the pandemic, before his mandate expired at the end of January.
(AFP)