Howard Schneider, Ann Saphir

WASHINGTON (Reuters] – The Federal Reserve’s “most difficult task right now” is controlling inflation, Fed Governor Lael Mindard declared in prepared remarks at a Senate hearing about her nomination to be vice-chair.

Brainard stated that the recovery is the strongest and most sustained in terms of growth, as well as the decline in unemployment. He made these comments in remarks to Senate Banking Committee. However, inflation has reached a level that is far beyond what working Americans are comfortable with. We are focusing our monetary policy on bringing inflation down to 2 per cent while maintaining a recovery inclusive of all. This is the most important job we have.

Brainard’s testimony will start at 10 AM EST (1500 GMT), in an event that could signal the beginning of a larger and more bitter partisan fight over the Fed’s 7-member governing body.

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 was a Democrat who was first elected to the Fed by President Barack Obama in 2014. He was confirmed by a 61-31 vote.

She was an opposition vote as a Fed Governor against the steps of former President Donald Trump and Fed Chair Jerome Powell.

Republican senators warned of a potential battle to come. At Powell’s confirmation hearing this week, one Republican senator asked him if he was at risk of being outnumbered if Brainard or the other Biden-appointed Fed members are confirmed. To confirm Brainard as vice-chair, a majority vote is needed in the Senate. This narrowly controlled body includes Democrats.

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%.