July 16 International Forex News

Fed Governor Cook: Ready to Act If Inflation Does Not Ease Soon

July 16: Federal Reserve Governor Lisa Cook said on Wednesday that it would be prudent to allow more time for inflation to cool, but that she is prepared to act if inflation does not ease soon.

Cook said: “I think it would be wise to allow more time from here to see how inflation develops. However, I still believe the risks remain tilted mainly toward higher inflation in the future, due to investment enthusiasm in artificial intelligence, tariffs, and price pressures from the Iran war. If we do not see signs of inflation cooling soon, I am prepared to take action. I am fully committed to our inflation target, and that commitment is unwavering.”

Cook compared the current situation with a year ago, when inflation was far above the Fed’s 2% target and the labor market appeared stable, though there were risks of slowing in both employment and inflation.

“I note that, compared with about a year ago, the balance of risks has shifted significantly, and inflation risks now outweigh employment risks,” she said.

Fed Chair Worsh: I Am Unhappy With All Inflation Measures

Federal Reserve Chair Worsh appeared before the Senate today and repeatedly voiced dissatisfaction with inflation. He said: “Recent inflation data do not perfectly reflect underlying inflation conditions. The labor market looks fairly good, but the inflation picture is not so encouraging. I am not satisfied with any inflation measure. We will review our tools, including the balance sheet and interest rates, to see whether adjustments are needed to address inflation.”