New Federal Reserve Governor Lisa Cook said on Thursday she supports further interest rate hikes and keeping the benchmark policy rate high enough to dampen growth until the central bank is satisfied. that inflation is “firmly on track” towards its 2% target.
“Inflation is too high, it needs to come down and we will keep going until the job is done,” Cook told the Peterson Institute for International Economics, in his first speech since joining the Fed in May.
Cook, who was an economics professor at Michigan State University, is the first black woman to serve on the Fed’s seven-member board of governors.
It was approved in May by a narrow 51-50 vote, with Vice President Kamala Harris casting the decisive vote.
When Cook joined the Fed, the central bank’s benchmark interest rate was below 1%. Since then, the Fed has raised its benchmark rate to a range of 3% to 3.25% and Fed officials’ median estimate is for the central bank to raise rates to a range of 4.55 to 4.75% next year.
In her remarks, Ms Cook said higher interest rates are needed as inflation remains “stubbornly and unacceptably high”.
And after hitting 40-year highs this summer, inflation showed a slower-than-expected decline, Cook said.
At the same time, “there are reasons to expect core goods inflation to slow in the months ahead,” Cook said. She pointed out that used car prices have come down and new car prices are also expected to moderate.
DJIA US Stocks,
were lower on Thursday while the yield on the 10-year Treasury note TMUBMUSD10Y,
rose above 3.8% for the first time this week.