Howard Schneider and Ann Saphir

(Reuters) – Controlling the inflation spike that reached nearly 40 years ago highs is the most important task facing the Federal Reserve at the moment, Fed Governor Lael brainard stated in prepared remarks to a Senate hearing Thursday about her nomination for vice-chair of the U.S. central banking.

Brainard commented in remarks to Senate Banking Committee that “we are witnessing the strongest rebound of growth and decrease in unemployment. This is the most significant recovery since any recovery in five decades.” But inflation is still too high and people working in the United States are worried about their future paychecks. Our monetary policy focuses on keeping inflation below 2 percent and sustaining an inclusive recovery. This is our greatest task.

Brainard will begin her testimony at 10:00 EST (1500 GMT). This session could be the beginning of a wider and possibly bitter partisan battle over the composition of the Fed’s seven-member board.

There are only four open seats at the moment. Biden could fill those vacant slots, as well as a second vice-chair’s position overseeing financial regulations, to help push his Democratic supporters for what they believe should be an expanded Fed role in climate matters and more tougher relations with Wall Street.

Brainard, a Democrat, was appointed as the Fed’s first member in 2014 by the then-President Barack Obama. He was also confirmed in the same election by a 61 to 31 vote.

She is an experienced U.S. economist and she noted in her comments that she has “worked at U.S. policies response to all major financial crises for three decades” as both a member and more recently, at the Fed.

Brainard stated in her prepared remarks that she is committed to “the independent and nonpartisan status of the central banking institution” and promised an “independent voice.”

Her voting record as Fed governor was often dissenting against actions taken by former President Donald Trump’s office and Fed Chair Jerome Powell. She called for Fed oversight to allow financial institutions to have more capital.

Conservative groups such as the Club for Growth have attempted to make the case against her nomination as vice-chair. Republican senators, however, are warning of a possible fight: At Powell’s confirmation hearing, a Republican senator asked if he would be outnumbered if Brainard and the other Biden nominees to the Fed’s Board were confirmed.

Brainard’s confirmation hearing and Sandra Thompson’s will take place together. Thompson has been nominated to direct the Federal Housing Finance Agency by Biden. Thompson currently serves as FHFA’s interim director.

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Vice chair of Fed has an important role in shaping monetary policies. This is shifting away from the initial accommodative programs and toward higher interest rates, and other attempts to control inflation.

Brainard’s prepared remarks were very similar to Powell’s Tuesday hearing monetary policy script. Powell stated that the Fed will use higher interest rates as well as other measures to make sure inflation does not rise from the current high of 1.2% to 2%.

U.S. consumer price are increasing at an unprecedented pace over the past four decades due to high demand for used cars and limited supply because of a snarling supply chain and a workforce that is suffering from soaring health issues.

The Fed decided last month to end its monthly bond purchases in March to clear the way for what most policymakers expected would be at least three quarter-percentage-point interest rate hikes this year.

Brainard as vice chairman would have greater influence on cutting-edge topics like cryptocurrency regulation and climate change, which are areas where the central bank’s policy is still in flux.

Fed vice-chairs are frequently called upon to help develop new policies. Brainard, as a governor, has set out a wide agenda.