Fed’s Cook to weigh financial conditions in setting policy
2023.03.31 18:08
© Reuters. FILE PHOTO: Dr. Lisa DeNell Cook, of Michigan, nominated to be a Member of the Board of Governors of the Federal Reserve System, speaks before a Senate Banking, Housing and Urban Affairs Committee confirmation hearing on Capitol Hill in Washington, D.C.,
(Reuters) – Federal Reserve Board Governor Lisa Cook on Friday said she will weigh signs of momentum in inflation against potential economic headwinds from recent turmoil in the banking sector in an effort to calibrate the right level of interest rates to bring down inflation amid uncertainty.
“On the one hand, if tighter financing conditions restrain the economy, the appropriate path of the federal funds rate may be lower than it would be in their absence,” Cook said in remarks prepared for delivery. “On the other hand, if data show continued strength in the economy and slower disinflation, we may have more work to do.”
