Fed Governor Cook Says Monetary Policy Not Predetermined, Flags Risks to Both Sides

02:21 PM EST, 11/03/2025 (MT Newswires) -- The path of monetary policy is not predetermined and will continue to be based on incoming information, Federal Reserve Governor Lisa Cook said Monday at Brookings.

"Looking ahead, policy is not on a predetermined path," Cook said. "We are at a moment when risks to both sides of the dual mandate are elevated."

Cook noted the risks to lowering rates too early or too late and said she will continue to watch incoming data from a variety of sources, while acknowledging the lack of government data due to the ongoing government shutdown.

Cook said she supported the Federal Open Market Committee's decision to lower its federal funds rate target to a range of 3.75% to 4%.

"I viewed that decision as appropriate, because I believe that the downside risks to employment are greater than the upside risks to inflation," Cook said. "I view the latest reduction in the fed funds rate as another gradual step toward normalization. I see the current policy rate as remaining modestly restrictive, which is appropriate given that inflation remains somewhat above our 2% target."

Some Fed officials, including Fed Chair Jerome Powell, have suggested that a rate cut at the December meeting is not a certainty. Cook did not repeat those comments, saying that every meeting, "including December's, is a live meeting."

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