Federal Reserve Governor Lisa D. Cook emphasized that inflation remains persistently above the 2% target, with uncertainty about when tariff effects will subside. While the labor market shows stabilization, she cautioned against complacency, noting reduced dynamism could leave it vulnerable to shocks. Consumer sentiment remains low despite a solid economy, driven by factors including rising living costs, AI-related job uncertainty, and long-term structural challenges. Cook supported the Fed’s decision to maintain steady monetary policy rates, stressing the importance of preserving credibility to achieve disinflation. She acknowledged risks tilted toward higher inflation and reiterated the Fed’s commitment to its dual mandate of price stability and maximum employment.
https://www.federalreserve.gov/newsevents/speech/cook20260204a.htm
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