Federal Reserve Board Governor Lisa Cook
- speaking on “Global Inflation and Monetary Policy Challenges” before the 2024 Australian Conference of Economists
Cook (info via Reuters):
- “My baseline forecast…is that inflation will continue to
move toward target over time, without much further rise in
unemployment,” - soft landings are “more likely when policy easing began with
inflation already close to target and when there was a
relatively firm growth backdrop” - “In the U.S., what I
have seen so far appears to be consistent with a soft landing:
Inflation has fallen significantly from its peak, and the labor
market has gradually cooled but remains strong.”
As a Governor of the Bank Cook has a vote at every Federal Open Market Committee (FOMC) meeting.
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The Fed next meets on July 30-31. On hold is expected, with the chance of a September rate cut firming up. Not everyone agrees:
- “Fed has no business lowering rates now … lost touch with economic reality”
- Goldman Sachs on US, “absolutely a soft landing”, Fed rate cut cycle to begin in September
This article was written by Eamonn Sheridan at www.forexlive.com. Source