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 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 risks are increasing on 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 economic impacts of the tariffs implemented during former President Donald Trump's administration.

Labor Market and Unemployment Rate

Regarding the labor market, Cook indicated that the rising unemployment rate points to a moderate softening. However, she noted that the recent slowdown in job growth is "mostly due to a random drop in population growth caused by immigration policy."