Each of the debates promises to train the Capitol’s attention on the vexing state of the U.S. economy: Unemployment is low, yet employers’ labor needs remain high; wages have grown while prices are on a steep incline. National gauges for inflation alone reached their highest levels in four decades this month, a spike that left lawmakers hearing an earful from voters in their states and districts during the recess.
“They’re concerned about the rising costs of living, and that’s everything from the rising costs of gas to groceries,” said Rep. Stephanie Murphy (D), adding that the shortages on store shelves recently in her Orange County, Fla., district seemed reminiscent of hurricane season.
Much of the economic tumult stems from a pandemic that remains impossible to predict — and the still-unfolding aftermath of Russia’s invasion of Ukraine. But the dynamic nonetheless offers fertile ground for fresh, high-stakes political squabbles between Democrats and Republicans, just over six months before Americans head to the polls in the 2022 midterm elections.
“My sense is this is a make-or-break moment,” Sen. Chris Van Hollen (D-Md.) said about the fate of Democrats’ spending agenda. “This will be the moment people have to look at each other, eyeball to eyeball, and make a determination of whether we’ll move forward.”
Setting the stage for the week to come, Democrats and Republicans took to the airwaves on Sunday, squaring off on competing news shows about the extent of inflation and the role Washington should play in combating it.
Appearing on CNN’s “State of the Union,” Sen. Elizabeth Warren (D-Mass.) stressed that it “is the responsibility of Congress, of the president, to get out there and make the changes we need to make to bring down those prices for families.” She accused Republicans of focusing their time on trying to “fight the culture wars,” even as she warned Democrats about the consequences if they fail to advance their own economic agenda.
“If we don’t get up and deliver,” Warren said, “then I believe that Democrats are going to lose.”
Rep. Michael McCaul (R-Tex.), meanwhile, said rising prices will be a key driver for Republicans reclaiming the House in November. “I predict we’re going to get probably at least 40 seats because this president has been so unpopular when it comes to inflation” and other issues, McCaul said on “Fox News Sunday.”
For now, the immediate task in the Senate involves the future composition of the nation’s central bank. The chamber is set to vote as soon as this week on four nominees for the Federal Reserve: Jerome H. Powell, the current chairman; Philip Jefferson, a professor at Davidson College; Lael Brainard, a Fed governor selected for its second-most powerful slot; and Lisa Cook, a Michigan State University professor who would become the first African American woman on the board.
All four nominees are expected to prevail, thanks to Democrats’ tiebreaking majority. The process is likely to begin “starting Monday night,” said Sen. Sherrod Brown (D-Ohio), the leader of the chamber’s Banking Committee, adding that the exact timing would depend on “how much” Republicans try to slow down debate.
An earlier candidate, Sarah Bloom Raskin, withdrew her nomination amid opposition from Republicans as well as Democrats’ own…
