Fed's Cook expects inflation progress to stall after tariffs

Federal Reserve (Fed) Board of Governors member Lisa Cook joined the ever-growing number of central policy planners on Thursday to caution that tariffs are likely to push the Fed further away from rate cuts instead of closer as inflation risks climb.

Key quotes

• It's appropriate to maintain current policy for now while watching data.
• Fed policy is well-positioned to respond to changes in the economy.
• Now is the time for the Fed to be patient but attentive.
• Uncertainty related to tariffs could cause the economy to weaken.
• Reduced uncertainty and easing inflation would facilitate rate cuts.
• The economy has entered a period of uncertainty.
• Inflation data is already showing the impact of tariffs.
• It's encouraging inflation has moderated amid solid growth and a healthy job market.
• Right now, the economy is in a solid position.
• I am watching for evidence of trouble on longer-term inflation expectations.
• Uncertainty is heightened by economic outlook and government policy shifts.
• I am watching for evidence that tariffs are driving a persistent increase in price pressures.
• I see more emphasis on upside inflation risks.
• I see more evidence of slowing consumer spending and business investment.