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, "As we look ahead, policy is not on a predetermined path. We are in a period where risks have increased 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 highlighted that she expects inflation to remain high next year while assessing the economic impacts of the tariffs implemented during former President Donald Trump's administration.

Labor Market and Unemployment Rate

Regarding 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 as a result of immigration policy."