All three Fed Nominees from US President Biden highlight inflation threat

Anil Panchal FXStreet

Early Thursday morning in Asia, Reuters shared prepared statements from President Joe Biden's pick for various positions in the Federal Reserve (Fed), posted by the US Senate Committee.

“Sarah Bloom Raskin, President Joe Biden's pick to lead the Federal Reserve's regulatory work (Nominee for Fed’s Vice Chair for Supervision), plans to tell lawmakers on Thursday that it would not be her job to direct banks where to lend,” said Reuters.

The Nominee for Fed’s Vice Chair for Supervision also said her job would be to consult widely with experts inside and outside the Fed on how banks are managing their risks, rather than directing credit.

“Reducing inflation should be 'top priority for federal reserve while sustaining recovery,” mentions Fed Nominee Raskin.

Reuters adds, “Raskin has faced criticism from Republicans and some energy groups that if confirmed, she might discourage lending to fossil fuel companies.”

Moving on, US President Biden’s Nominee to the Federal Reserve Board Philip Jefferson said, per Reuters, “Tackling high inflation and keeping inflation expectations anchored should be a main priority for the central bank.”

"Today, the economy is facing two major challenges: the COVID-19 pandemic and inflation," Jefferson said in prepared remarks released ahead of a confirmation hearing on Thursday at the Senate Banking committee per Reuters.

"The spike in inflation we are seeing today threatens to heighten expectations of future inflation," adds US President Biden’s pick for Fed Board.

At last, Lisa Cook, one of U.S. President Joe Biden's nominees to the Federal Reserve Board, said the central bank's most important task is tackling high inflation, said Reuters.

“I agree with Chair Powell that our most important task is tackling inflation. High inflation is a grave threat to a long, sustained expansion," said Fed Board Nominee Cook.

FX reaction

The news adds to the market’s recently cautious sentiment ahead of the key monetary policy meetings by the European Central Bank and the Bank of England. However, the US dollar is yet to recover the latest losses.

Read: Forex Today: Dollar retains the weak stance ahead of BOE, ECB

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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