Fed’s Cook: Dual mandate risks better balanced

In a speech last night, Fed Governor Lisa Cook stated that the risks to achieving Fed’s dual mandate of employment and inflation have “moved toward better balance this year.” However, she emphasized that the economic outlook remains “always uncertain.”

Cook stressed the importance of addressing this uncertainty by considering “a range of scenarios,” rather than relying solely on the baseline forecast. She believes that Fed’s current policy is “well positioned” to respond to any changes in the economic outlook.

“At some point,” Cook noted, it will be appropriate to start lowering interest rates. However, the timing of any such adjustment will depend on how economic data evolve and their implications for the outlook and balance of risks.

Full speech of Fed’s Cook here.