Lael Brainard, a Federal Reserve governor whom President Biden has nominated to be the central bank’s new vice chair, said the Fed will communicate its plans for removing economic support clearly — and suggested that the job market will continue to grow even as the Fed pulls back its help and as inflation begins to ease.
Ms. Brainard faced vetting before the Senate Banking Committee on Tuesday. She fielded questions about her qualifications, her views on the Fed’s role in preparing the financial system for climate change and the outlook for the United States economy.
In a hearing marked by limited contention — one that suggested Ms. Brainard could enjoy some bipartisan support — the nominee expressed a willingness to combat high and rising prices by removing Fed help for the economy. The central bank is already slowing its bond-buying program, and it has signaled that it could soon raise interest rates and begin to shrink its asset holdings in a bid to further cool off the economy.
“I believe we’ll be able to see inflation coming back down to target while the employment picture continues to clear,” Ms. Brainard said, after noting that the Fed would communicate its plans for withdrawing support clearly. “There are some short-term constraints there that I think are limiting people from coming back into the labor market. As those are lifted, I think we’ll have continued gains.”