Get ready for 2022’s Fed

By Courtenay Brown

Get ready for new faces who could leave a mark on the economic recovery. Where it stands: There are three open slots on the seven-seat Federal Reserve Board of Governors, plus openings for permanent heads at two regional Fed banks — all of which may be filled this year. Why it matters: Fresh voices are coming at a delicate moment. The Fed is moving to choke off soaring inflation, teeing up this year for a pivot away from its ultra-easy money policies…..One important vacancy is the Fed’s vice chair for supervision, its most influential bank cop.Former Fed governor Sarah Bloom Raskin, who in recent years has called on financial regulators to do more to address climate change, is the leading candidate for that post, Axios’ Hans Nichols reported last night.”Regulatory policy is where I think you’re going to see a really sharp shift,” says Karen Petrou, co-founder of Federal Financial Analytics, a banking consulting firm.The big picture: Fed watchers say new additions to the board may introduce a sea change for issues the central bank has started to be more outspoken about. Climate change is one, and a more inclusive definition of full employment — that factors in indicators like the Black unemployment rate — is another. “I think you’ll see more discussion of inclusive monetary policy, but whether we see actual inclusive monetary policy is much harder to predict,” says Petrou.