Fed's Cook: US data consistent with soft landing

Fed Governor Lisa Cook said U.S. inflation should continue to fall without a significant rise in the unemployment rate. U.S. inflation should continue to fall without a significant rise in the unemployment rate, Fed Governor Lisa Cook said on Wednesday. Cook said she felt the evidence for a “soft landing” in the U.S. was lining up, with the Fed’s latest preferred measure of inflation at 2.6 percent, versus the central bank’s 2 percent target, and the unemployment target at 4.1 percent. “My baseline forecast is that inflation will continue to move toward target over time without a significant rise in unemployment,” Cook said. While soft landings are rare in economic history, Cook said the rapid decline in inflation without a significant rise in the unemployment rate is a good sign and she credits the Fed with getting the timing right when it decided to start easing monetary policy. “What I’ve seen so far in the U.S. looks like a soft landing. Inflation has fallen significantly from its peak and the labor market has cooled but remains strong.” The Fed's next meeting is scheduled for July 30-31, and investors expect rate cuts to begin immediately after the September meeting.