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US Federal Reserve (Fed) Governor Lisa Cook said on Wednesday that risks are skewed toward higher inflation, adding that she’s optimistic about inflation’s path yet cautious and vigilant. Key quotes Risks are skewed toward higher inflation. US inflation has stalled persistently above 2% goal. Optimistic about inflation’s path yet cautious and vigilant. See economy growing slightly better than 2 percent this year. Concerned about possible timing mismatch between costs of AI investment and increase in productivity. Best thing Federal Reserve can do is ensure inflation returns to and stays at target. It is anticipated that disinflation could resume as tariff effects recede, but there is much uncertainty. US economy solid although some signs of worsening outlook for low and moderate income households.   It is essential to return to a disinflationary path and achieve the inflation target in the near future. Weak consumer sentiment does not reveal a signal about an increase in slack that can be tackled with Fed policy rate. I believe the labor market will continue to be supported by last year’s Federal Reserve rate cuts. Labor market has stabilized and is approximately in balance, but highly attentive to potential for rapid shift. Will not have anything today on recent legal proceedings. Will continue to carry out duties at Fed.  Look forward to getting to know Warsh but do not comment on candidates for Federal Reserve roles. Last core personal consumption expenditures reading way above Federal Reserve target.  Goods inflation hopefully will dissipate quickly; once it does, we should be back on the disinflation path. Have to monitor labor market very closely.  US monetary policy is somewhat restrictive.  It is the right time to sit back and wait to see what happens.  I want to wait to see what happens, considering long and variable delays.  Still a lot…

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Filed under: News - @ February 5, 2026 12:24 am