Fed Governor Cook: Rate cuts so far an important step in lifting policy constraints

Fed Governor Cook said a pause in rate hikes could occur if the progress of the inflation correction slows while the job market remains solid. If the labour market and inflation develop as expected, it would be appropriate to continue to reduce the policy rate to a neutral level. The rate cuts to date have been an important step in lifting policy constraints, with the headline data suggesting that the fall in inflation is continuing and the labour market is gradually cooling, and that the size and timing of the cuts will depend on upcoming data, the economic outlook, and the balance of risks; the policy is not predetermined.