The United States economy “continues in a solid position, but Uncertainty has increased significantly since the beginning of the year“, Said the governor of the Fed Lisa Cook at an event of the Foreign Relations Council in New York.
Although The final level of Trump’s tariffs is still unknown due to changes in their policy, “The effects are already noticed”he said.
In particular, Cook warned about greater inflation and a cooling of the labor market.
Price increases linked to these changes “They can hinder greater short -term progress” Regarding inflation controlhe added.
The Fed Keep interest rates at a high level If inflation is high, to cool consumption and with it the bullish pressures on prices. When inflation is low, The Central Bank can reduce rates to boost economic activity.
Federal Reserve Government Lisa Cook Says She Sees Tariffs As Potentially Stoking Inflation and Weakening Employment During An Event Organized by The Council On Foreign Relations In New York https://t.co/isjd4oqotb pic.twitter.com/fzzd7pygl9
– Bloomberg TV (@bloombergtv) June 3, 2025