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 >
US Economy Expanded at 'Slight to Moderate Pace,' Beige Book Shows
US Economy Expanded at 'Slight to Moderate Pace,' Beige Book Shows
Jul 15, 2026
02:24 PM EDT, 07/15/2026 (MT Newswires) -- The US economy expanded at a slight to moderate pace in 11 of the 12 Federal Reserve districts, while the other district reported no change, the Federal Reserve's most recent Beige Book update released Wednesday showed. This was little changed from the previous Beige Book, the Fed said. Consumer spending was slightly higher,...
Economic activity on the rise and inflation may be improving, Fed survey shows
Economic activity on the rise and inflation may be improving, Fed survey shows
Jul 15, 2026
July 15 (Reuters) - U.S. economic activity increased slightly in recent weeks, employment rose, and companies and households indicated that inflation may have improved, the Federal Reserve said on Wednesday, in a report that will help shape the policy debate when Kevin Warsh leads his second interest rate-setting meeting in two weeks. Contacts generally expected the economy to continue to expand in...
Federal Reserve Watch for July 15: Warsh Repeats FOMC Will Take Ownership of Inflation, Act as Needed
Federal Reserve Watch for July 15: Warsh Repeats FOMC Will Take Ownership of Inflation, Act as Needed
Jul 15, 2026
03:18 PM EDT, 07/15/2026 (MT Newswires) -- Fed Chairman Kevin Warsh (voter) repeated that the FOMC will take ownership of inflation and take actions if needed to bring it back toward the 2% goal but did not provide forward guidance. Warsh again said that monetary policy caused inflation through its policy and that would not be the case under his...
Busiest US container port sets cargo record in June
Busiest US container port sets cargo record in June
Jul 15, 2026
LOS ANGELES, July 15 (Reuters) - The Port of Los Angeles, the busiest U.S. container seaport, said on Wednesday it set a June cargo record as shippers ranging from retailers to data center builders rushed in goods to avoid higher fuel costs and new U.S. import tariffs. The Southern California port handled 1,002,734 20-foot equivalent units (TEUs) last month, 12% more...
Copyright 2023-2026 - www.financetom.com All Rights Reserved