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FED'S COOK: EXPECTS INFLATION TO MOVE SIDEWAYS FOR THE REST OF THE YEAR AND DROP IN 2026

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Federal Reserve (Fed) Lisa Cook noted that she expects the Fed's progress on inflation to continue despite a bumpy start to the year. Fed Governor Cook was addressing the Economic Club of New York on Tuesday.

Key highlights

At some point it will be appropriate to cut rates.

Current policy is well positioned to respond to economic outlook.

A rise in inflation expectations would imply keeping monetary policy restrictive for longer.

I am very attentive to inflation expectations.

The timing of any policy adjustment will depend on economic data and its implications for outlook and the balance of risks.

Monetary policy is restrictive.

Inflation has slowed, and the labor market tightness has eased.

I am fully committed to 2% inflation target.

Policy would also need to respond to sharper-than-expected weakening of economy and the job market.

The job market is tight but not overheated.

The risks to achieving inflation and employment goals have moved toward better balance.


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