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

Warnings from Fed Governor on Labor Market Risks

Federal Reserve Governor Lisa Cook made important statements on Monday at a Brookings Institution event in Washington. Cook stated, "Looking ahead, the policy is not on a predetermined path. We are in a period where risks have increased for both sides of dual mandates." 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 economic impact of tariffs implemented during former President Donald Trump's administration.

Labor Market and Unemployment Rate

Speaking about the labor market, Cook noted that the rising unemployment rate indicates a mild softening. However, she pointed out that the reason for the recent slowdown in job growth is "largely due to a random decline in population growth caused by immigration policy."