Fed governor speaks up after three months of silence, hints at final rate cut possibility this year

In her first comments since Trump’s attempt to dismiss her, Lisa Cook highlighted that policy isn’t predetermined. Currently, the market estimates a 65% likelihood of a December rate cut, showing decreased confidence compared to earlier predictions.

Cook cautioned that inflation might exceed the Fed’s 2% target, especially due to rising costs. She also noted that low-income households could be significantly affected if the job market weakens.