President Joe Biden nominated Jerome Powell for a second term at Federal Reserve. This was even after inflation became Americans’ top concern. According to the White House, Powell was responsible for a significant revaluation of the Federal Reserve’s objectives to refocus on workers from all backgrounds in order to improve their mission.


According to reports, inflation has eroded wage gains for workers in the earlier part of the month. Jeff Cox stated that inflation fell 0.5% per year when it was taken into account. A 0.9% increase in inflation negates a 0.4% increase in wages.


The most vulnerable people are those who can least afford inflation. It was also reported that Powell was the Federal Reserve’s most dovish Chairman. Some argued that Powell might need to shift his focus from stimulating the economy towards “giving preference to inflation at all costs”.


However, Washington is more concerned with inflation than the high-interest rate to combat inflation. Washington’s $29 billion debt will become more costly if interest rates rise. Biden also appointed Lael Brainard vice-chair of the Federal Reserve System’s Board of Governors. Forbes described her as one of the Fed’s most outspoken climate change critics.


Brainard is more cautious than Powell and will continue to support a monetary policy that is accommodative through low rates of interest and quantitative easing.


Brainard is also critical of “wealth inequality,” another position that often indicates someone who favors loose-money policies while inflation eats away at middle-class household budgets. Now is the time to grab your wallets.
