enabled big banks to become more intertwined with venture capital.

Critics say reappointing Mr. Powell amounts to retaining that more hands-off regulatory approach. And some progressive groups suggest that if Mr. Powell stays in place, Mr. Quarles will feel emboldened to stick around: He has hinted that he might stay on as a Fed governor once his leadership term ends.

That would mean four of seven Fed Board officials — a majority — would remain Republican-appointed. Two other governors — Michelle W. Bowman and Christopher J. Waller — were nominated by President Donald J. Trump.

During Mr. Powell’s Senate testimony last week, Ms. Warren said renominating him as chair meant “gambling that, for the next five years, a Republican majority at the Federal Reserve, with a Republican chair who has regularly voted to deregulate Wall Street, won’t drive this economy over a financial cliff again.”

Even without Ms. Warren’s approval, Mr. Powell would most likely draw enough support to clear the Senate Banking Committee, the first step before the full Senate could vote on his nomination, because of his continued backing from the committee’s Republicans. But having a powerful Democratic opponent whose support the administration needs on other legislative priorities is not helpful.

The Fed chair does have some powerful allies in the administration, including Ms. Yellen, the Treasury secretary. But the decision rests with Mr. Biden.

“I know he will talk to many people and consider a wide range of evidence and opinions,” Ms. Yellen said on CNBC on Tuesday.

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Fed Officials’ Trading Draws Outcry, and Fuels Calls for Accountability

None of those transactions took place between late March and May 1, a Fed official said, which would have curbed Mr. Kaplan’s ability to use information about the coming rescue programs to earn a profit.

But the trades drew attention for other reasons. Mr. Conti-Brown pointed out that Mr. Kaplan was buying and selling oil company shares just as the Fed was debating what role it should play in regulating climate-related finance. And everything the Fed did in 2020 — like slashing rates to near zero and buying trillions in government-backed debt — affected the stock market, sending equity prices higher.

“It’s really bad for the Fed, people are going to seize on it to say that the Fed is self-dealing,” said Sam Bell, a founder of Employ America, a group focused on economic policy. “Here’s a guy who influences monetary policy, and he’s making money for himself in the stock market.”

Mr. Perli noted that Mr. Kaplan’s financial activity included trading in a corporate bond exchange-traded fund, which is effectively a bundle of company debt that trades like a stock. The Fed bought shares in that type of fund last year.

Other key policymakers, including the New York Fed president, John C. Williams, reported much less financial activity in 2020, based on disclosures published or provided by their reserve banks. Mr. Williams told reporters on a call on Wednesday that he thought transparency measures around trading activity were critical.

“If you’re asking should those policies be reviewed or changed, I think that’s a broader question that I don’t have a particular answer for right now,” Mr. Williams said.

Washington-based board officials reported some financial activity, but it was more limited. Jerome H. Powell, the Fed chair, reported 41 recorded transactions made by him or on his or his family’s behalf in 2019, and 26 in 2020, but those were typically in index funds and other relatively broad investment strategies. Randal K. Quarles, the Fed’s vice chair for supervision, recorded purchases and sales of Union Pacific stock from 2019 in his 2020 disclosure. Those stocks were assets of Mr. Quarles’s wife and he had no involvement in the transactions, a Fed spokesman said.

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Fed Officials Tamp Down Overheating Concerns

Inflation jitters are popping up in earnings call chatter, spooking investors and dominating business television talk shows. One place they aren’t taking over, it appears, is the Federal Reserve.

America’s central bank is responsible for fostering maximum employment and stable inflation — making it the first line of defense against fast price gains. Fed officials have been clear for months that they expect prices to pop this spring and summer as the economy reopens but that they think the jump will prove temporary. By and large, they are sticking to that script.

During a volley of speeches and appearances on Wednesday, central bank policymakers made clear that they do not think incipient price pressures are going to prove painful or last long. Some suggested that they would even welcome what a hotter economy might have to offer.

“You talk about the economy overheating, you kind of go: ‘Gosh, I kind of like producing as much as we can,’” Charles Evans, president of the Federal Reserve Bank of Chicago, said during a call with reporters. “Why would you like unemployment to be higher when it can be lower? It depends on what the added cost is.”

aims for inflation at 2 percent on average over time, so it is currently angling for a period of slightly higher price gains to offset years and years of very weak gains. Price pressures are picking up a bit from very slow readings a year ago during the worst of the pandemic shutdowns, and economists think supply bottlenecks could keep them elevated for a time as producers try to ramp up for a national reopening.

But officials have been clear they do not expect that situation to force them to rapidly dial back the policies they have in place to bolster the economy — buying $120 billion in government-backed bonds per month and keeping interest rates at rock bottom.

“We’re still a long way away from our goals, and in our new framework we want to see actual progress, not just forecast progress,” Richard H. Clarida, the central bank’s vice chair, said on CNBC on Wednesday afternoon. “As we move through the year, we’ll get more data.”

The Fed’s policymakers have repeatedly said they want to see “substantial further progress” before slowing bond purchases, and full employment and 2 percent inflation with evidence that it will stay above that level for some time before lifting interest rates.

They’ve drawn a distinction between inflation that jumps in 2021 because of reopening quirks and sustainable price pressures that suggest they’ve achieved their goals.

prepared remarks released Wednesday morning. “I am encouraged by the recent pace of the economic recovery, and I remain optimistic that this strength will continue in the coming months.”

If prices take off, the Fed could dial back its buying or lift rates. Either move would make borrowing more expensive, likely slowing the economy and denting the stock market.

“Our baseline view is that we don’t overheat,” Mr. Clarida said. “If there are unforeseen, persistent upward pressures on prices,” then “we would use our tools to bring it down.”

Historically, abrupt Fed policy changes have at times set off recessions. That’s why some economists are worried. If the Fed is forced to act to choke off pesky price pressures, it entails real risks for the economy that could hurt the most vulnerable, who tend to lose jobs first in downturns.

avoid taking too defensive a position.

If the Fed signals that it may lift rates sooner and market-based financial conditions tighten in response — often the case with central bank communications — it could make borrowing more expensive and slow the economy. In that event, it might take longer for the labor market to reach full strength.

“Why do we have bottlenecks?” Ms. Daly asked on Twitter on Wednesday. “Newly vaccinated people are spending, so we have a ‘freedom-induced demand spurt.’ Producers have to catch up. So ride through the temporary pops in inflation — the economy’s in transition.”

Mr. Evans said he wished people who fretted about an overheating economy would explain precisely how high they thought inflation was about to go — and how the economy was going to get to a place where prices remained sustainably hotter.

“I really wish that people who say they’re concerned about inflation, that they would sort of fill in the dots on exactly what kinds of numbers are you talking about,” Mr. Evans said.

He also expressed comfort in the possibility that wages might rise, even if companies didn’t have the pricing power to pass that on as inflation, forcing businesses to eat higher costs and cutting into their profits.

“If wages go up, if labor share was to increase relative to capital share, I mean, I’m kind of agnostic about that,” Mr. Evans said. “We saw labor share fall over a long period of time, and if we didn’t get our nose out of joint then, why would we get our nose out of joint when labor share goes up?”

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Still Getting Your Head Around Digital Currency? So Are Central Bankers.

The question is whether the new technology is going to make the yuan an attractive alternative to other currencies. Chinese central bankers say it is not an effort to supplant the dollar, and Martin Chorzempa, a senior fellow at the Peterson Institute for International Economics, said digitization won’t fix issues that make the yuan unattractive as a reserve currency in the first place — like capital controls, which mean you can’t exchange it easily at all times.

Others worry that private-sector innovations like Bitcoin or “stablecoins,” which are backed by a bundle of assets or currencies, could become an attractive alternative to government-created cash if central banks don’t keep up.

Mr. Powell has argued that Bitcoin is more like gold than the dollar. It has value because it’s rare and people want to hold it, so it can even at times be traded for other goods and services, but it is not government-guaranteed money.

But global regulators did slow down Facebook’s stablecoin project, originally known as Libra and now called Diem, because they worried about the potential for money laundering and financial system disruption.

Mr. Powell said in testimony last year that Libra was “a bit of wake up call that this is coming fast and could come in a way that is quite widespread and systemically important fairly quickly,” highlighting the “importance of making quick progress.”

If tech companies come to dominate the payment system, that could create privacy and stability issues. In fact, China’s digital yuan was pursued partly in reaction to the rise and dominance of private-sector digital payment platforms like Alipay and WeChat Pay.

A faster or instant payments system, like the FedNow instant payment technology that America’s central bank is now developing, could keep the Fed up-to-date without changing the system as much as a digital currency would. But digital dollar fans say the point is to prepare for the future — and the future might be central bank digital currency.

“Digital cash, if built in the right way, could be really groundbreaking,” said Neha Narula, who is the director of the Digital Currency Initiative at the Massachusetts Institute of Technology and is working with the Boston Fed on its project.

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