Fed Governor Lisa Cook: Risks in the Labor Market Are Increasing

Warnings from Fed Governor on Labor Market Risks

Federal Reserve (Fed) Governor Lisa Cook made significant statements at a event held at the Brookings Institution in Washington on Monday. Cook stated, "Looking ahead, policy is not on a predetermined path. We are in a period where risks are increasing for both sides of the dual mandate," indicating that the likelihood of a rate cut next month appears low.

High Inflation Expectations for Next Year

Cook underscored her expectation that inflation will remain high next year, evaluating the effects of the tariffs imposed during former President Donald Trump's administration on the economy.

Labor Market and Unemployment Rate

Regarding the labor market, Cook noted that the rising unemployment rate indicates a moderate softening. However, she pointed out that the recent slowdown in job growth is predominantly due to a "random decline in population growth caused by immigration policy."