Fed's Cook says she 'wholeheartedly' supported 50 bps rate cut

Federal Reserve (Fed) Governor Lisa Cook said on Thursday that she endorsed the 50 basis points (bps) interest rate cut last week as a way to address increased "downside risks" to employment, per Reuters.  

Key quotes

"I wholeheartedly supported the decision." 

 "That decision reflected growing confidence that, with an appropriate recalibration of our policy stance, the solid labor market can be maintained in a context of moderate economic growth and inflation continuing to move sustainably down to our target."

"In thinking about the path of policy moving forward, I will be looking carefully at incoming data, the evolving outlook, and the balance of risks." 

"As labor demand and supply are now more evenly balanced, it may become more difficult for some individuals to find employment." 

"The return to balance in the labor market between supply and demand, as well as the ongoing return toward our inflation target, reflects the normalization of the economy after the dislocations of the pandemic." 

 "This normalization, particularly of inflation, is quite welcome, as a balance between supply and demand is essential for sustaining a prolonged period of labor-market strength."
 

Market reaction

The US Dollar Index (DXY) is trading 0.02% higher on the day at 100.58, as of writing.