MNI: Fed's Cook Says Achieving Price Stability To Take Caution
Fed governor says risks are moving into better balance.
Federal Reserve Governor Lisa Cook said Monday officials must cautiously balance the risk of easing monetary policy too much or too soon, allowing inflation to linger above target, and taking too long to ease, which could harm the economy needlessly and deprive people of economic opportunities.
"The risks to achieving our employment and inflation goals are moving into better balance," she said in prepared remarks in a speech at Harvard University, that focused on the Fed's dual mandate. "Nonetheless, fully restoring price stability may take a cautious approach to easing monetary policy over time." (See: MNI INTERVIEW: Fed Can’t Let Guard Down On Inflation -Weinberg)
"The path of disinflation, as expected, has been bumpy and uneven, but a careful approach to further policy adjustments can ensure that inflation will return sustainably to 2% while striving to maintain the strong labor market," she said.