Fed Lisa Sees Inflation as Greater Risk to the Economy

Speaking at the Economic Club of Miami, Federal Reserve Governor Lisa Cook said the U.S. economy remains resilient after stronger than expected growth in the second half of 2025. Cook said overall growth stayed solid, with the economy expanding slightly above 2% in 2025, while GDP jumped at a 4.4% annual rate in Q3. However, she warned that conditions are worsening for low and moderate income households. Cook said inflation has stalled above target, with personal consumption prices rising 2.9% and core inflation at 3%. She pointed to tariffs as a key driver of rising goods prices. Unemployment stood at 4.4% in December, while payroll growth slowed to 50,000 jobs in November and December. Citing inflation risks, Cook supported the Fed’s decision to hold rates steady.