Fed Governor Lisa Cook addressed the delicate balance between sustaining economic growth and managing inflation in her conference remarks overnight. Cook acknowledged the possibility of achieving a “soft landing” for the US. economy, highlighting the ongoing disinflationary trends and robust labor market conditions. However, she was quick to note that such an outcome is not guaranteed.
“A ‘soft landing’ is possible, with continued disinflation and a strong labor market, but it is not assured,” Cook stated. She elaborated on the complexities noting, “I see risks as two-sided, requiring us to balance the risk of not tightening enough against the risk of tightening too much.”
She also pointed out the current economic resilience, saying, “The economy is still growing and consumers are still spending,” which could potentially maintain demand-driven pressures in the market. Such momentum, according to Cook, could keep the economy and labor market tight, consequently slowing the disinflation process.
However, Cook also expressed concern over the potential negative impacts of aggressive policy measures, adding, “But I am also attuned to the risk of an unnecessarily sharp decline in economic activity and employment.”
![Pinterest](https://pinterest.com/pin/create/button/?url=https://www.actionforex.com/live-comments/527766-feds-cook-soft-landing-is-possible-but-not-assured/&media=https://www.actionforex.com/wp-content/uploads/featured-images/f-fed3.jpg&description=Fed Governor Lisa Cook addressed the delicate balance between sustaining economic growth and managing inflation in her conference remarks overnight. Cook acknowledged the possibility of achieving a "soft landing" for the US. economy, highlighting the ongoing disinflationary trends and robust labor market conditions. However, she was quick to note that such an outcome is not guaranteed.){kind=link}