Lisa Cook, Fed Board Member: "At Some Point, Rate Cuts Appropriate... Inflation Will Rapidly Slow Next Year"

"Inflation, Gradual Improvement Expected Over the Next 3 to 6 Months"

Lisa Cook, a member of the U.S. Federal Reserve (Fed) Board, said that inflation is expected to gradually improve this year and that it would be appropriate to lower interest rates at "some point."

On the 25th (local time), Cook attended an event at the New York Economic Club and stated, "If inflation makes significant progress and the labor market gradually eases, it would be appropriate at some point to reduce the level of policy restraint to maintain a healthy balance in the economy."

However, she added, "The timing of adjustments depends on how economic data progresses and what that means for the economic outlook and risk balance."

She predicted that inflation will continue to decline over the next 3 to 6 months along a "bumpy path."

Cook said, "I expect inflation to slow more sharply next year," adding, "Housing service inflation will fall reflecting a slowdown in new rents, core goods prices will remain negative, and core non-housing services prices will ease over time."

Regarding the labor market, which has been fueling inflation, she assessed that it is similar to the pre-pandemic (global pandemic) level and described it as "tight but not overheated."

This content was produced with the assistance of AI translation services.