Fed's Cook Says Hold Rates Steady as Inflation Moves in Wrong Direction
Federal Reserve Governor Lisa Cook said the right course is to keep rates steady for now as inflation risks remain tilted to the upside and price pressures are moving in the wrong direction. She said the Fed would be prepared to raise rates if expected disinflation fails to appear in a timely manner.
Cook said policymakers would also be ready to cut rates if the labor market deteriorates, although she described the job market as largely stable with elevated downside risks. She added that oil prices would be problematic if they move in the wrong direction, and said AI-driven job losses could come before productivity gains even as she remains optimistic about growth and AI's longer-run benefits.
From the sources (8 posts)
@firstsquawkFED’S COOK SAYS THE RIGHT COURSE OF ACTION IS TO HOLD RATES STEADY AS INFLATION RISKS REMAIN TILTED TO THE UPSIDE AND PRICE PRESSURES ARE MOVING IN THE WRONG DIRECTION.
@firstsquawkFED'S COOK SAID THE FED IS PREPARED TO RAISE RATES IF DISINFLATION FAILS TO APPEAR, BUT WOULD ALSO BE READY TO CUT RATES IF THE LABOR MARKET DETERIORATES, WHILE WARNING THAT AI-DRIVEN JOB LOSSES COULD COME BEFORE FUTURE PRODUCTIVITY GAINS.
@wallstengineFED'S COOK: INFLATION IS CLEARLY MOVING IN WRONG DIRECTION. RIGHT COURSE OF ACTION IS TO HOLD RATES STEADY
@financialjuice🔴Fed's Cook: The right course of action is to hold rates steady.
@financialjuiceFed's Cook Comments Risks are tilted toward higher inflation clearly, moving in the wrong direction. We're prepared to raise rates if expected disinflation doesn't appear in a timely manner Would be prepared to cut rates if the labor mar
@businessFederal Reserve Governor Lisa Cook said inflation is headed in the wrong direction and she would be prepared to raise interest rates if that persists.
@financialjuiceFed's Cook: Also watching the price of oil.
@financialjuiceFed's Cook: Problematic if oil price goes in the wrong direction.