On 1/13/2022, Lael Brainard, a Democrat who currently serves on the Fed’s Board of Governors, appeared before the Senate Banking Committee for her confirmation hearing and faced several questions about the higher prices. Senator John Kennedy grilled Brainard “How’d You Get It So Wrong?”

Sen. Patrick J. Toomey, R-Pa., the panel’s highest-ranking Republican, slammed the Fed’s handling of inflation during the pandemic and the monetary policy framework adopted in 2020, placing part of the blame on Brainard, “the Fed looked beyond employment as a whole to consider whether employment was “broad based and inclusive.” What this meant was the Fed would sacrifice stable prices to see if it could achieve higher employment gains in certain demographic groups.”

“As Governor Brainard explained last year, the Fed should look at employment numbers on a “disaggregated basis” and use monetary policy to narrow employment gaps between different “racial and ethnic groups.” This framework would keep in place an inflation tax on all Americans while the Fed decided which sub-groups of people should have faster job growth over others. The problem is monetary policy can never equalize employment rates amongst different groups. In the end, the Fed would run the risk of failing on both fronts of its dual mandate because you need stable prices to achieve a strong economy and maximum employment. ”

https://facebook.com/HygoNewsUSA/videos/357192545808665/
How did you get inflation so wrong? Fed decided inclusive ethnic group faster job growth over others