Interest rate message from Fed official

Fed Board Member Lisa Cook said that a rate cut ‘will be appropriate at some point’ if there is significant progress on disinflation.

Speaking at the Economic Club of New York, Cook said that a rate cut would be appropriate if the economy performs as expected. “Our current policy is appropriately calibrated for any change in the economy. If inflation makes significant progress and the labor market cools, a rate cut would be appropriate at some point to stabilize the economy in a healthy way.”

Cook said the timing of the cut would depend on the data.

Noting that risks to inflation and employment targets are balanced, Cook also said that price pressures will ease more strongly next year.