In a speech overnight, Fed Governor Lisa Cook articulated her stance on waiting for more definitive signs of inflation moving towards 2% target before considering any policy rate reductions.
“I would like to have greater confidence that inflation is converging to 2% before beginning to cut the policy rate,” she said.
Further, Cook shared an optimistic view on the inflation outlook, suggesting that a forecast showing 12-month PCE inflation moving towards target over time remains a “reasonable” baseline scenario.
However, Cook also advocated for a measured and data-driven approach to policy decisions. “We should continue to move carefully as we receive more data,” she advised, stressing the importance of maintaining the current level of policy restriction to achieve “sustainable” price stability.
