Elizabeth Warren Wants Biden’s Next Fed Pick to Counter Powell’s ‘Extreme’ Rate Hikes
- Warren worries higher rates will spark job losses, recession
- Hearings next week could test consensus on fighting inflation
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President Joe Biden’s choice for Federal Reserve vice chair will signal where he stands on combating inflation — and whether he agrees with restive progressives worried that the central bank’s rate increases will lead to job losses and recession.
It’s a familiar dilemma for the president, who has had to choose between pleasing progressives and getting broader bipartisan backing in his past Fed picks. This time, however, the political stakes are higher as Biden prepares to mount an expected reelection bid where the economy and persistent inflation will be a central issue.