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Fed Governor Lisa Cook warns inflation pressure could persist

Cook said she expects labor market resilience to let the Fed sustain a higher-rates stance, citing unemployment of 4.1% and improving job openings.

Reported · Written up by our desk · Central Banks

Federal Reserve Governor Lisa Cook said at Oakland Tech Week that inflation is still too high and that additional upward pressure is likely, with drivers including the AI investment boom and higher oil prices, as well as Middle East-related supply chain disruptions, according to Action Forex.

Cook, who backed the Fed’s September 25 basis point rate hike, estimated total inflation running at 3.8% through August and core inflation at 3.4%. She said the Fed should remain data dependent as these pressures unfold.

On the policy outlook, Cook said the labor market appears well positioned to handle higher rates, pointing to unemployment at 4.1%, improving job openings and payrolls, lower initial claims, and resilient economic growth, Action Forex reported.

Cook also cautioned that the Fed should not try to counter narrow relative price increases with monetary policy, describing its tools as too blunt to target specific sectors, while arguing that AI demand is building broader pressure across the economy.

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