Cook: Fed may have more to do if disinflation slows
United States Federal Reserve Governor Lisa Cook noted that the central bank "may have more work to do" if data reports point to a slowdown in the disinflationary process, as well as "continued strength in the economy."
Delivering remarks at a Midwest Economics Association-hosted event in Cleveland, Ohio, she noted that banking issues could lead to tighter credit conditions and "greater headwinds" to the economy, possibly providing a reason to implement less strict interest rates.
Echoing similar comments made by Fed Chair Jerome Powell, Cook warned that inflation in the non-housing core services category "that accounts for more than half of the core PCE index... looks quite persistent amid strong post-pandemic demand for travel, dining out, and medical care."