Another Federal Reserve governor calls for caution regarding further interest rate cuts!

Federal Reserve Governor Cook urged caution regarding further interest rate cuts, emphasizing the need to focus on inflation and employment targets. She pointed out that the cooling labor market and the slowing pace of inflation decline could impact policy decisions. Despite the Federal Reserve cutting rates by 25 basis points last week, Cook warned that if there is a risk of accelerating inflation, rate cuts should be paused. She expects the PCE price index to rise by 2.3% year-on-year, with core PCE rising by 2.8%. She also emphasized the importance of central bank independence in response to concerns about Trump potentially limiting the Federal Reserve's independence