Particle.news
Download on the App Store
5 ARTICLES
·
2h ago

Fed’s Cook Signals No Near-Term Rate Cuts as Inflation Progress Stalls

She cites stalled core inflation near 3% with tariff uncertainty keeping risks tilted higher.

Federal Reserve Governor Lisa Cook walks outside the U.S. Supreme Court, as Supreme Court justices consider U.S. President Donald Trump's effort to fire her, in Washington, D.C., U.S., January 21, 2026. REUTERS/Nathan Howard
Federal Reserve Governor Lisa Cook, accompanied by lawyer Abbe Lowell, walks outside the U.S. Supreme Court, as Supreme Court justices consider U.S. President Donald Trump's effort to fire her, in Washington, D.C., U.S., January 21, 2026. REUTERS/Nathan Howard
Image
Image

Overview

  • In prepared remarks in Miami, Lisa Cook said she will not back another cut until disinflation is clearly sustained toward the 2% goal.
  • She described policy as mildly restrictive in a follow-up Q&A and urged patience to assess the delayed effects of earlier moves.
  • Core inflation hovered around 3% late last year, while unemployment stood at 4.4% and the labor market appeared stabilized by 2025’s cuts.
  • Cook flagged tariff-driven goods price pressures as a key unknown and warned about the risk of inflation expectations becoming entrenched.
  • She recently joined a 10–2 vote to hold rates steady, as a Supreme Court case contests an attempted ouster and President Trump has nominated Kevin Warsh to succeed Chair Jerome Powell.