01:21 PM EST, 01/06/2025 (MT Newswires) -- Federal Reserve Governor Lisa Cook on Monday urged monetary policymakers to proceed "more cautiously" with interest rate cuts, given the Fed's 100 basis points of policy easing since September.

Cook continues to believe it will be appropriate to move the benchmark rate toward a more neutral stance over time. However, inflation has been stickier than Cook assumed in September, while the labor market has been "somewhat more resilient," she said in prepared remarks for delivery at University of Michigan's Law School.

"All along, I envisioned moving more quickly in the early stages of our easing campaign and then easing more gradually as the policy rate came closer to neutral," said Cook. "I think we can afford to proceed more cautiously with further cuts."

The Federal Open Market Committee's three interest rate cuts since September have "notably reduced" the restrictiveness of monetary policy, she said.

"Price increases have cooled notably over the past two and a half years, but, despite this significant progress on disinflation, there is still further to go before reaching our inflation target of 2%," Cook said. She does not see the labor market as a source of "significant" inflationary pressure.

Annual inflation eased to 2.4% in November from a peak of 7.2% in June 2022, according to the personal consumption expenditures index. Core PCE, which excludes volatile food and energy costs, was down to 2.8% in November from 5.6% in September 2022.

"Policy is not on a preset course," Cook said. "The magnitude and timing of future changes to policy rates will depend on incoming data, the evolving outlook, and the balance of risks."