11:13 AM EST, 11/20/2024 (MT Newswires) -- The path of rate reductions will continue to be based on incoming data and information and can be adjusted faster or slowing depending on conditions, Federal Reserve Governor Lisa Cook said Wednesday at the University of Virginia.

"Going forward, I still see the direction of the appropriate policy rate path to be downward, but the magnitude and timing of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks," Cook said. "I do not view policy as being on a preset course, and I am ready to respond to a changing outlook. In fact, I find it helpful to consider a range of scenarios when thinking about the path of policy."

Cook said that if conditions in the labor market and inflation progress as expected, it could be appropriate to lower rates over time to near the neutral rate.

"However, if inflation progress slows and the labor market remains solid, I could see a scenario where we pause along the downward path," said Cook. "Alternatively, should the labor market weaken in a substantial way, it could be appropriate to ease policy more quickly."