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 significant statements on Monday at a Brookings Institution event in Washington. Cook stated, "Looking ahead, policy is not on a predetermined path. We are in a period where risks are increasing on both sides of the dual mandate." Thus, 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 effects of tariffs implemented during former President Donald Trump's administration.

Labor Market and Unemployment Rate

Addressing 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 decline in population growth caused by immigration policy."