Federal Reserve Governor Lisa Cook emphasizes waiting for clearer inflation slowdown but hints at potential policy action if progress stalls.
Federal Reserve Governor Lisa Cook stated that it remains prudent to wait for further evidence of inflation slowing but indicated policymakers are prepared to act if disinflation does not resume soon. She noted a shift in risks toward higher inflation since last summer, though the overall balance remains stable.
Cook cited persistent price pressures from factors like tariffs, Middle East conflict, and AI-driven investment as potential risks to disinflation. While inflation expectations remain anchored, she stressed the need for vigilant monetary policy to prevent unmooring. The comments reflect cautious optimism but underscore ongoing concerns.
Markets are parsing Cook’s remarks for signals on the Fed’s next moves, with investors weighing the likelihood of rate cuts against stubborn inflation data. Her stance aligns with recent Fed communications emphasizing data dependency.