Federal Reserve Governor Lisa Cook seems to have pushed the pause button on her high-profile feud with U.S. President Donald Trump. The governor recently made an appearance on Monday, not in court, but at the Brookings Institute in Washington, DC to discuss monetary policy. Echoing her boss, Fed Chairman Jerome Powell, who gave his customary press conference last week after the central bank’s second rate cut this year, Cook’s message emphasized the complexities of satisfying the Fed’s dual mandate of stable prices and maximum employment.
Read more: Trump Takes Fed Governor Lisa Cook to the Supreme Court
“My assessment is that inflation is on track to continue on its trend toward our target of 2% once the tariff effects are behind us,” Cook said. “I will be prepared to act forcefully, if the tariff effects appear to be larger or last longer than expected.” She went on to describe the employment landscape as “solid, though gradually cooling,” adding that she would remain “highly attentive to downside risks” related to the labor market.
Cook spent most of her career out of the spotlight, until the Trump administration accused her of mortgage fraud after revealing that in 2021, she had listed two different properties under “primary residence” on two separate loan applications just weeks apart. But the governor said it was a simple error, and that it wasn’t grounds for dismissal. A legal battle ensued, quickly reaching all the way to the Supreme Court. Cook then won a decision to continue in her role until the court reviews oral arguments from both sides in January 2026.
For now, it will be business as usual for the governor. She even voted in favor of the last two interest rate reductions that Trump had been calling for all year. Before concluding her speech on Monday, she appeared to indicate that her decision in the upcoming December Fed meeting, just weeks before her Supreme Court hearing, will be strictly based on data not spite.
“As always, I determine my monetary policy stance each meeting based on the incoming data from a wide variety of sources, the evolution of my outlook, and the balance of risks,” Cook explained. “Every meeting, including December’s, is a live meeting.”
- What did Lisa Cook say about inflation?
She reaffirmed her commitment to the Fed’s 2% target, warning she’ll act “forcefully” if tariff-driven price pressures persist. - How does Cook view the job market?
She described employment as “solid but gradually cooling,” noting growing risks for vulnerable households. - What’s next for her legal battle with Trump?
The Supreme Court will hear oral arguments in January 2026 over allegations of mortgage fraud that Cook denies. - How will the Fed proceed on rates?
Cook said every meeting, including December’s, is “live” and guided strictly by data, not politics.
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