Federal Reserve Governor Cook supports a 25 basis point rate hike in September

Federal Reserve Governor Lisa Cook stated that overall U.S. inflation has remained above the Federal Reserve’s 2% target for more than five years. She supports a 25 basis point rate hike at the September meeting and emphasized a commitment to restoring price stability while maintaining a strong job market. She noted that approximately 20 million workers in U.S. rural communities account for about one-eighth of the U.S. employed population. While the overall unemployment rate is close to the national level, the labor participation rate is lower, and employment growth in recent years has lagged behind urban areas. After the pandemic, inflation in rural areas at one point outpaced that in urban areas, mainly due to rising energy prices and housing costs. Cook pointed out that transportation spending accounts for about one-quarter of rural households’ total expenditure, higher than that of urban households, making rural residents more sensitive to energy price increases. She also noted that small businesses play a key role in the rural economy, with about 4.3 million small businesses in rural America, representing over 96% of local businesses and providing 7.4 million jobs.