Fed's Cook: need more confidence on inflation before cutting rates

"I would like to have greater confidence that inflation is converging to 2% before beginning to cut the policy rate," she said in remarks prepared for delivery to Princeton University’s School of Public and International Affairs. While it is "reasonable" to expect inflation to get to the Fed's 2% goal over time, the path toward that goal has been and could still be "bumpy and uneven," she said, citing recent stronger-than-expected readings on consumer price inflation. As for monetary policy, she said, "I am now weighing the possibility of easing policy too soon and letting inflation stay persistently high versus easing policy too late and causing unnecessary harm to the economy."

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