Fed candidate Barr says he’s committed to lowering inflation

The facade of the Federal Reserve Building in Washington, July 31, 2013. REUTERS/Jonathan Ernst

May 18 (Reuters) – U.S. Federal Reserve nominee Michael Barr, nominated by Democratic President Joe Biden to be the central bank cop on Wall Street, said on Wednesday he was committed to bringing inflation back at 2%.

“Inflation is far too high, affecting communities across the country. I would be firmly committed to bringing inflation back to the Federal Reserve’s target, consistent with the Federal Reserve’s dual mandate of maximum job stability. and prices,” Barr said in published testimony. ahead of a congressional hearing on Thursday where he will explain why he should take on the Fed’s vast regulatory portfolio as vice chairman of oversight.

Barr, a former senior Treasury Department official under President Barack Obama, will testify before the Senate Banking Committee at 10 a.m. ET.

In his prepared testimony, Barr shed little light on what he would do on rules for the financial industry. He simply said that if confirmed, he would commit to ensuring that the financial system is resilient, fair and that innovation can thrive with “clear rules of thumb”.

At the Treasury, Barr played a pivotal role in crafting the Dodd-Frank Financial Reform Act of 2010, which established a host of new safeguards after the 2008 financial crisis.

Barr is Biden’s second nominee for the Fed, which is one of the government’s most powerful banking watchdogs. Biden’s previous pick, Sarah Bloom Raskin, withdrew after moderate lawmakers said they would not support her nomination, citing past comments that financial regulators should be more aggressive in monitoring risks related to the climate change.

Reporting by Lindsay Dunsmuir, Pete Schroeder and Ann Saphir; Editing by Chizu Nomiyama

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