Fed’s vice-chair, newest governor sworn in

PHILIP Jefferson on Wednesday (Sep 13) took the oath of office as the Federal Reserve Board’s new vice-chair, the US central bank said, as policymakers gear up for an interest-rate-setting meeting next week.

Also sworn in were Fed governor Lisa Cook to a new 14-year term and Adriana Kugler as the Fed’s newest Board member.

The actions, following Senate confirmations of the three last week, will not change the outcome of the Sep 19-20 meeting, at which Fed officials are widely anticipated to leave the policy rate in its current 5.25 per cent-5.50 per cent range.

But it does mean the Fed board will have its full seven-member slate as policymakers digest incoming data in coming months to determine whether more tightening is needed to bring inflation to heel.

The three newly sworn in officials have disclosed little on their views during the confirmation process, though Jefferson is expected to align closely with Powell’s view that the Fed may need to act if inflation pressures remain uncomfortably high.

Colombian-born Kugler is the first Latina to join the Fed board, and both Cook and Jefferson are Black, making the current board the most racially diverse in its 109-year history.

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US President Joe Biden has sought to bring more people from racially-diverse backgrounds into the Fed leadership to ensure a broader range of perspectives as policymakers weigh decisions that affect the economic wellbeing of Americans. REUTERS