Senate Confirms Lisa Cook To The Fed

Cook’s confirmation clears the way for lawmakers to confirm two additional choices this week, including Jerome Powell, whose four-year term as chairman expired in February. Philip Jefferson, an economist at Davidson College, is expected to join the board and won unanimous support from the Senate Banking Committee in March. An effort to advance Cook’s nomination stalled last month due to absences on the Democratic side to covid-19. His term runs through January 2024.

Cook served as an economist on the staff of the Council of Economic Advisers during former President Barack Obama’s administration. His research has focused on policies that promote broad economic opportunity, particularly for racial minorities and women. Some Republicans suggested at Cook’s confirmation hearing in February that she did not have enough experience in macroeconomics and monetary policy, a claim she rebutted by highlighting her research experience and work at the Treasury Department and the White House.

Some analysts have speculated that the new directors may favor less aggressive interest rate increases, but they are unlikely to prevent the Fed from moving at a faster pace of tightening as long as inflation is well above the central bank’s 2 percent target. Cook and Jefferson said in their Senate appearances in February that fighting high inflation should be a Fed priority.