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

Warnings from the Fed Governor Regarding Labor Market Risks

Federal Reserve Governor Lisa Cook made important statements on Monday during an event at the Brookings Institution in Washington. Cook said, "In looking forward, policy is not on a predetermined path. We are in a period where risks are increasing on both sides of the dual mandate." Thus, the likelihood of a new interest rate cut next month also looks weak.

High Inflation Expectations for Next Year

Cook emphasized that she expects inflation to remain high next year, evaluating the economic impacts of tariffs implemented during the presidency of Donald Trump.

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 reason for the recent slowdown in job growth is "mainly due to a random decline in population growth because of immigration policy."