Fed's Cook Sees Disinflation but Warns of Persistent Price Pressures from Tariffs, Middle East, AI

Federal Reserve Governor Lisa Cook stated that there is reason to believe disinflation will occur, but also noted risks that price pressures could persist. These risks stem from tariffs, the Middle East conflict, and AI investment.

Cook added that inflation expectations remain anchored, but said this depends on appropriate monetary policy. She stressed that the Fed cannot take its eye off the ball, implying ongoing vigilance is required.