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

Warnings from Fed Governor about Labor Market Risks

Federal Reserve Governor Lisa Cook made important 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 for both sides of the dual mandate." This indicates that the prospect 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 while evaluating the impacts of tariffs implemented during former President Donald Trump's administration on the economy.

Labor Market and Unemployment Rate

Discussing 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 "largely due to a random drop in population growth because of immigration policy."