Fed Governor Cook Favors Waiting for Inflation to Cool, Warns of Tariff and AI Investment Risks

businessmacroeconomics 4 posts · 3 accounts

Fed Governor Cook advocated waiting for inflation to cool before taking policy action, warning she is prepared to act if price pressures do not decline soon.

Cook noted a shift in economic risk since last summer toward higher inflation, citing tariff policies, Middle East conflict and artificial intelligence spending as factors that could keep price pressures persistent. She cautioned that inflation expectations remain anchored, but warned that sustained progress depends on appropriate monetary policy.

From the sources (4 posts)

@tradfi

*FED'S COOK SAYS IT IS PRUDENT TO WAIT 'A BIT MORE TIME' FOR INFLATION TO SLOW, BUT SHE IS PREPARED TO ACT IF IT DOES NOT OCCUR 'SOON'

@firstsquawk

FED'S COOK SAYS IT IS PRUDENT TO WAIT 'A BIT MORE TIME' FOR INFLATION TO SLOW, BUT SHE IS PREPARED TO ACT IF IT DOES NOT OCCUR 'SOON' || SINCE LAST SUMMER THERE HAS BEEN 'A NOTABLE SHIFT' IN RISK TOWARDS HIGHER INFLATION AND AWAY FROM THE J

@financialjuice

Fed's Cook: It is prudent to wait ‘a bit more time' for inflation to slow, but she is prepared to act if it does not occur 'soon'.

@firstsquawk

FED'S COOK SAYS THERE IS REASON TO THINK DISINFLATION WILL OCCUR, BUT SEES RISKS ALSO THAT PRICE PRESSURES WILL PERSIST DUE TO TARIFFS, MIDDLE EAST CONFLICT, AI INVESTMENT || INFLATION EXPECTATIONS ARE ANCHORED, BUT THAT DEPENDS ON APPROPRI

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