09:35 AM EST, 01/06/2025 (MT Newswires) -- Given the progress on inflation and the gradual cooling in the labor markets, the Federal Open Market Committee can proceed cautiously with further interest rate reductions after trimming the federal funds rate target by a full percentage point over the last three meetings, Federal Reserve Governor Lisa Cook said Monday at University of Michigan's Law School.

"Over time, I still think it will likely be appropriate to move the policy rate toward a more neutral stance," Cook said. "However, the 100 basis points of rate cuts since September have notably reduced the restrictiveness of monetary policy."

Cook added that it was always her intention for the FOMC to move quickly to cut rates at the start of the easing cycle but then to move slower after that.

"In addition, since September, the labor market has been somewhat more resilient, while inflation has been stickier than I assumed at that time," Cook said. "Thus, I think we can afford to proceed more cautiously with further cuts."

The risks to achieving the FOMC's dual goals of price stability and maximum employment are "roughly in balance," Cook said, echoing comments from other Fed officials, so the timing of future reductions will depend on the incoming data.

"My policy decisions will be guided by our dual mandate of stable prices and maximum employment, and I know delivering on those goals will produce the best economic outcomes for all Americans," Cook said.