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

Warnings from the Fed Governor on Labor Market Risks

Federal Reserve Governor Lisa Cook made significant statements at a Brookings Institution event in Washington on Monday. Cook stated, "Looking ahead, policy is not on a predetermined path. We are in a period where the risks have increased on both sides of the dual mandate." This suggests that the likelihood of a new rate cut next month appears low.

High Inflation Expectations for Next Year

Cook emphasized that she expects inflation to remain high next year, evaluating the economic impacts of tariffs imposed during former President Donald Trump's administration.

Labor Market and Unemployment Rate

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