financetom
Economy
financetom
/
Economy
/
Fed's Cook says she is focused on inflation risks
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Fed's Cook says she is focused on inflation risks
Mar 11, 2026 3:01 AM

Feb 4 (Reuters) - Federal Reserve Governor Lisa Cook on Wednesday said she is more concerned about stalled progress on inflation than a weakening labor market, a strong signal that she will not support another interest-rate cut until price pressures that built last year due to tariffs begin to recede. 

"At this time, I ‌see risks as tilted toward higher inflation," Cook said in remarks prepared for delivery to the Economic Club of Miami, ​a week after she joined the majority of her fellow U.S. central bankers in a ‍10-2 vote to leave the policy rate steady.

The Fed cut short-term ⁠borrowing costs three times ⁠last year, to its current range of 3.50%-3.75%.

Those reductions will continue to support a now stabilized labor market, she ‌said. Unemployment, at 4.4% in December, is well ​below the 50-year average of 6.2% that preceded the 2020 COVID-19 pandemic, she noted.

But progress on inflation, which the Fed targets at 2%, has stalled, ⁠running at about 3% at the end of ‍last year ​after stripping out volatile food and energy prices, she said.

"Such a plateau is frustrating after seeing significant disinflation in the preceding few years," she said.

And while she ‍is optimistic that the effect of tariffs on goods prices will recede and allow inflation to come back down again this year, there is "much uncertainty" over that path, including future tariff policy and whether inflation expectations may become entrenched.    

"After nearly five years of above-target inflation, it is essential that we maintain our credibility by returning to a disinflationary path and ​achieving our ‍target in the relatively near future," Cook said. "Until I see stronger evidence that inflation is moving sustainably back down to target, that is where my focus ​will be, in the absence of unexpected changes in the labor market."

Cook has voted with Fed Chair Jerome Powell and the majority of Fed policymakers on every interest-rate decision she has taken part in since she started the job in 2002. 

President Donald Trump, who has pressured the Fed to slash interest rates sooner and faster than it has, last year tried to oust Cook over alleged misstatements on ​her mortgage applications, an effort that she has sued to stop in a case currently before the Supreme Court. 

Trump has nominated former Fed governor Kevin Warsh to succeed Powell when his chair term ends in mid-May, in part ‍because Warsh supports the rate cuts that Trump wants. 

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Powell has a long to-do list for his last full year as Fed chief
Powell has a long to-do list for his last full year as Fed chief
Dec 18, 2024
WASHINGTON (Reuters) - The Federal Reserve will conclude its final meeting of 2024 on Wednesday, and next year will likely be Fed Chair Jerome Powell's last full one at the helm of the U.S. central bank, with his four-year term due to expire in May of 2026. Powell's more than six years as Fed chief have been consequential, but the...
Powell has a long to-do list for his last full year as Fed chief
Powell has a long to-do list for his last full year as Fed chief
Dec 18, 2024
WASHINGTON (Reuters) - The Federal Reserve will conclude its final meeting of 2024 on Wednesday, and next year will likely be Fed Chair Jerome Powell's last full one at the helm of the U.S. central bank, with his four-year term due to expire in May of 2026. Powell's more than six years as Fed chief have been consequential, but the...
Fed looks set to tweak reverse repo rate to speed exit of cash
Fed looks set to tweak reverse repo rate to speed exit of cash
Dec 18, 2024
NEW YORK (Reuters) - The Federal Reserve appears likely to take a step on Wednesday to nudge cash off its balance sheet as it enters a more uncertain period in what many see as the final months in its effort to draw down its balance sheet. Economists broadly expect the Fed to announce it's cutting the rate it pays money...
US Dollar Rises Early Wednesday, FOMC Takes Center Stage
US Dollar Rises Early Wednesday, FOMC Takes Center Stage
Dec 18, 2024
07:51 AM EST, 12/18/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Wednesday, except for a decline versus the euro, as markets turn their attention to the Federal Open Market Committee's post-meeting statement at 2:00 pm ET and Federal Reserve Chairman Jerome Powell's press conference at 2:30 pm ET. The CME's FedWatch tool currently shows...
Copyright 2023-2026 - www.financetom.com All Rights Reserved