The Senate confirms Lael Brainard as Fed vice-chair

The United States Senate confirmed Lael Brainard to be the Federal Reserve's next vice chair on Tuesday, a long-awaited step in her ascension to the highest ranks of the nation's central bank that cements her position as a critical deputy to Chair Jerome Powell.

Despite the close vote of 52-43, her confirmation was unsurprising. Brainard received support from Democrats and a few Republicans, including Wyoming Senator Cynthia Lummis.

The vote was closer than expected because Sens. Chris Murphy, D-Conn., and Ron Wyden, D-Ore., tested positive for Covid-19 and could not offer proper support.

Brainard's promotion, which has been expected for several weeks, is unlikely to change the Fed's plan to raise short-term interest rates. She has been a people of the central bank's board of directors for many years. Brainard, Powell, and other prominent bank officials have promised to raise interest rates and reduce other forms of monetary stimulus in recent months to slow the rate at which prices are rising.

The rapid rise in inflation and concern about the Fed's plans to make borrowing more expensive have put financial markets on edge this year. As a result, the S&P 500, a broad market index that tracks the equity performance of the big companies in the US, has fallen more than 11% this year.

Over the last four years, she has fought a series of steps the central bank took to ease laws enacted in the aftermath of the 2008-2009 financial crisis.

Several other Fed nominees chosen by President Joe Biden are still awaiting Senate confirmation. Powell has been nominated for a 2nd term as chairman of the Federal Reserve. The president has chosen two economists, Lisa Cook and Philip Jefferson, to serve as governors on the Fed's seven-member board.

A procedural vote on Cook's nomination is scheduled for later Tuesday afternoon, which would allow Senate Majority Leader Chuck Schumer, D-N.Y., to end the debate and advance her to a final confirmation vote.