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

Warnings from the Fed Governor About Labor Market Risks

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

High Inflation Expectations for Next Year

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

Labor Market and Unemployment Rate

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