Biden announces historic Fed nominations

President Joe Biden on Friday made two historic nominations to the Federal Reserve’s board — the first Latina governor and the second black vice chair.

Biden put up Adriana Kugler for Fed governor and nominated current Federal Reserve Governor Philip Jefferson to become the central bank’s vice chair — which would make him No. 2 to Fed Chair Jerome Powell.

Both picks are expected to sail through the Senate confirmation process.

The confirmation of Kugler, a Colombian-American, would address the long-standing complaints of NJ Sen. Bob Menendez, an influential Democrat who has decried the historic absence of Hispanics in US central bank leadership.

“We are finally giving Latinos, all 62 million of us who call this country home, a seat at the table where the most consequential decisions on monetary policy are made,” Menendez in a statement, pledging to fight for swift confirmations for all three in the closely divided Senate.

Jefferson — who became a Fed governor last year when Biden’s three picks set the seven-member board up to be it’s most diverse yet — was elevated to replace Lael Brainard.

Brainard left her post in February after nine years as Fed vice chair to join Biden’s National Economic Council.

Jefferson, 61, would become the second black vice chair since Roger Ferguson held the post roughly two decades ago.

Also Friday, Lisa Cook — who joined the Fed at the same time as Jefferson did last year — was re-nominated to a full 14-year term on the Board of Governors. Should she accept, her term will be extended from its current January 2024 end date.

When Cook was confirmed to the board last year, the 58-year-old economist became the first black woman to join the central bank’s leadership.

“These nominees understand that this job is not a partisan one, but one that plays a critical role in pursuing maximum employment, maintaining price stability, and supervising many of our nation’s financial institutions,” Biden said in a statement.

“I am confident these nominees will help build upon the historically strong economic recovery we have had under my Administration,” he added.

The nominations to the world’s top central bank come as the Fed opens a new chapter in its battle against high inflation.

Last week, Powell implied the Fed could be done increasing rates. He cited a “meaningful change” of the Fed’s language from its March statement that eliminated a key phrase — that additional policy increases might be appropriate, suggesting that a pause is very likely.

Powell’s comments came the same day the Fed approved a 25-basis-point hike — the 10th straight increase aimed at bringing down decades-high inflation.

In figures released on Wednesday, the Consumer Price Index, which excludes food and energy, rose 5.5% in April — a slight easing from the 5.6% increase the month prior, according to the US Bureau of Labor Statistics.

The overall CPI rose by 4.9% last month — again, a tick down from the 5% rate in March.

Core inflation, which measures what consumers pay for key household goods, rose 0.4%.

The CPI’s latest inflation numbers were a reflection of rising prices across shelter, gasoline, and used cars. Figures were offset, however, by decreasing rates across oil, new cars, and food.