MNI BRIEF: Cook Hopeful Fed Has Done Enough, Staying Vigilant

Federal Reserve Governor Lisa Cook on Monday indicated a bias toward leaving the Fed's policy rate steady, while also suggesting the recent rise in long-term U.S. bond yields does not seem to have been driven by investor expectations of further interest rate increases.

"We hope that this will be restrictive enough such that we can return to our 2% target over time, but we will continue to be vigilant," she said in Q&A after a speech on financial stability at Duke University. "We have to be data dependent and we have to be careful in assessing the data we have and aware of the data we don't have in real-time." (See: MNI: Yield Spike Cuts Chance Of Fed Dec Hike, Q1 Still In Play)

"We're looking for this soft landing. We're looking for the Goldilocks scenario. We're trying to balance these two-sided risks," Cook said. In her prepared remarks, Cook said an expectation of higher near-term policy rates does not appear to be causing the increase in longer-term rates.