Central Banks

Fed’s Cook Says Officials Can Be More Cautious With Rate Cuts

  • Inflation stickier, labor market more resilient than thought
  • Says rate cuts have ‘notably’ reduced policy restrictiveness
Fed Officials Can Be More Cautious With Rate Cuts, Cook Says
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Federal Reserve Governor Lisa Cook said policymakers can proceed more cautiously with interest-rate cuts, citing a sturdy labor market and lingering inflation pressures.

“Since September, the labor market has been somewhat more resilient, while inflation has been stickier than I assumed at that time,” Cook said Monday in prepared remarks at the Seventh Conference on Law and Macroeconomics in Ann Arbor, Michigan. “Thus, I think we can afford to proceed more cautiously with further cuts.”