Bank investors expect continued strength in 2022 because yields on loans could rise along with Federal Reserve rate hikes.

It opens the door to interest rate hikes.

Brainard will be nominated for vice chair. The two officials typically agree on monetary policy but sometimes diverge on regulation.

Critics have intensified calls for a new Federal Reserve chair following Powell’s financial disclosures, says Rachel Siegel of The Washington Post.

The Fed could buy defaulted Treasuries or swap Treasury bonds that weren’t in default for those that were.

The central bank can “be an assist” on climate risk, says economist Claudia Sahm, but Congress sets the priorities.

Wrapped up in this year’s theme — “Macroeconomic Policy in an Uneven Economy” — is years of debate and controversy over who the economy serves.

The central bank raised its inflation forecast to 3.4% by year-end and expects to hike its benchmark interest rate twice by late 2023.

Powell told lawmakers Tuesday that the “effect on inflation will be neither particularly large nor persistent,” from the $1.9 trillion rescue plan.

Prices are soaring, but economists expect market conditions to change.