US EditionFed Governor Lisa Cook sees tariffs raising inflation and complicating rate policy
- On June 3, 2025, Federal Reserve Governor Lisa Cook delivered remarks in New York where she highlighted concerns that tariffs could elevate inflation risks.
- She noted that while inflation showed signs of easing last month, with the Fed's favored gauge indicating core inflation around 2.5% and overall inflation near 2.1%, the introduction of new tariffs could potentially reverse these improvements.
- Cook warned tariffs might dampen hiring and wage growth, complicating the Fed's dual mandate to maintain stable prices and maximum employment amid economic uncertainty.
- She noted that rising prices related to shifts in trade policies could hinder further advancements in the short term, yet she maintains that the U.S. economy remains fundamentally strong despite ongoing risks.
- These concerns suggest that uncertainty from tariffs could delay Federal Reserve decisions on interest rates, though traders largely expect rate cuts starting in September if conditions stabilize.
20 Articles
20 Articles
Emerging Markets Face Complex Challenges Amid Trade War Impact
Gita Gopinath of the IMF highlighted the varied impacts of trade wars on central banks in emerging markets, contrasting it with the COVID-19 pandemic when monetary policies were quickly adjusted. She discussed the unpredictable effects of tariffs on these economies, adding complexity to the roles of central bankers.
Fed’s Cook Underscores Importance of Price Stability for Economy
Federal Reserve Governor Lisa Cook said she sees tariffs as potentially stoking inflation and weakening employment, yet underscored the importance of price stability when considering future interest-rate adjustments.
Fed officials beat the policy patience drum as tariff uncertainty persists
Federal Reserve officials on Tuesday argued again for caution on monetary policy as President Donald Trump's trade war continues to inject substantial amounts of uncertainty and the risk of economic weakness into the outlook.
US tariffs may hamper efforts to cool inflation – Fed official
WASHINGTON, United States — Shifts in US trade policy could hold back further progress in lowering inflation, a senior US central bank official said Tuesday, as President Donald Trump’s sweeping tariffs ripple through the economy. The US economy is “still on a firm footing, but uncertainty has notably increased since the beginning of the year,”
Fed Governor Lisa Cook Warns Tariffs Could Undermine Inflation Progress And Delay Interest Rate Cuts Amid Rising Economic Uncertainty
Federal Reserve Governor Lisa Cook has expressed concerns about the path of inflation, cautioning that new tariffs might reverse recent gains and bring uncertainty into future interest rate decisions. What Happened: Speaking at the Council on Foreign Relations in New York on Tuesday, Cook noted that inflation had cooled in April, with core prices at 2.5% and headline inflation at 2.1% based on the Fed's preferred measure, reported CNBC. However,…
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