Lisa Cook, a member of the Federal Reserve Board, speaks on “Economic and Monetary Policy Outlook” at the Brookings Institution in Washington, DC, USA on November 3, 2025.
Kevin Lamarque | Reuters
Federal Reserve Governor Lisa Cook on Monday, in her first policy speech since President Donald Trump tried to fire her, said she supported recent interest rate cuts and was open to further cuts.
Since President Trump moved to fire him in August on charges of mortgage fraud, Cook has kept a relatively low profile outside of the legal battles that have kept him in position at the central bank.
In a speech at the Brookings Institution in Washington, D.C., the policymaker laid out his views on the economy and where monetary policy should land. In general, he sees the economy as strong, but there are risks to both the Fed’s goals of low unemployment and stable inflation.
Cook said the Federal Open Market Committee voted 10-2 to cut the central bank’s benchmark interest rate by a quarter of a percentage point, making it the second consecutive meeting to cut interest rates.
“We thought this decision was appropriate because we believe the downside risks to employment are greater than the upside risks to inflation. We believe this reduction in the federal funds rate is another incremental step toward normalization,” he said.
Trump has been blocked by a court from firing Cook, a move seen as critical to the central bank’s independence. White House officials say Cook lied on forms she filled out for federally guaranteed mortgages, but she has not been convicted of anything or even charged.
Mr Cook cited a “clerical error” in the loan application. She declined to comment on the matter during the Q&A, calling it “inappropriate,” but said she was “beyond grateful” for the support she had received.
Meanwhile, he continues to work at the Federal Reserve, which in September cut the key federal funds rate for the first time since December.
Cook said the company remains firmly committed to relying on data. FOMC officials signaled in September that further rate cuts could occur before the end of the year.
“As always, I decide on the monetary policy stance at each meeting based on incoming data from a variety of sources, developments in the outlook and the balance of risks,” he said. “All meetings are live meetings, including the December meeting.”
“Certainly we want to see if the impact of tariffs persists, if companies are waiting for price increases, what they do with their inventories,” he added. “So there’s a lot to look at. We’re approaching the December meeting and there’s a lot to look forward to.”
Fed Chairman Jerome Powell spooked markets by saying in a press conference after Wednesday’s board meeting that a rate cut in December was not a certainty. Powell pointed to the wide spread of opinion on a committee known for its consensus approach to policy.
“As we look to the future, policy is not following a predetermined path,” Cook said, using language that has become a cliche for Fed officials. “We are now at a moment of heightened risk for both sides of our dual mandate.”
As for inflation, he said President Trump’s tariffs have not fully penetrated the economy. But he said the most likely outcome was a “one-off rise” in prices, which was unlikely to spur inflation in the long run.
