Fed Governor Cook says it's time to 'wait and see' on rates

Cook signals she won't support another rate cut until she sees more proof that inflation is receding.

Published on Feb. 5, 2026

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Federal Reserve Governor Lisa Cook signaled on Wednesday that she will not support another interest-rate cut until she sees more evidence that price pressures are receding, saying she is more concerned about stalled progress on inflation than a weakening labor market. Cook said she sees risks as tilted toward higher inflation and that the central bank should 'wait and see' on further policy changes after the series of rate cuts at the end of last year.

Why it matters

Cook's comments suggest the Fed may be nearing the end of its rate-cutting cycle, even as financial markets are pricing in two more rate cuts this year. Her stance contrasts with President Trump's push for faster and deeper rate cuts, and highlights the ongoing debate within the central bank about the right policy path.

The details

In her remarks to the Economic Club of Miami, Cook said she believes monetary policy is currently 'ever so mildly restrictive' and that the Fed should 'wait and see' on further changes. She noted that while the labor market has stabilized, progress on inflation has stalled, with estimates putting it around 3% at the end of 2022 after stripping out volatile food and energy prices. Cook said it is 'essential' the Fed return to a disinflationary path and achieve its 2% target 'in the relatively near future'.

  • On February 4, 2026, Federal Reserve Governor Lisa Cook made her comments at the Economic Club of Miami.

The players

Lisa Cook

A Federal Reserve Governor who has voted with the majority of the central bank's policymakers on every interest-rate decision since joining the Fed in 2022.

Jerome Powell

The current Chair of the Federal Reserve.

Donald Trump

The former President of the United States who has pressured the Fed to slash interest rates sooner and faster than it has.

Kevin Warsh

A former Federal Reserve governor who was nominated by President Trump to succeed Jerome Powell as Fed Chair, in part because Warsh supports the rate cuts that Trump wants.

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What they’re saying

“At this time, I see risks as tilted toward higher inflation.”

— Lisa Cook, Federal Reserve Governor (Reuters)

“We put a lot of easing into the pipeline at the end of last year and I think that given where the labor market is, where inflation is, this is the right time to sit back and wait to see what happens.”

— Lisa Cook, Federal Reserve Governor (Reuters)

“After nearly five years of above-target inflation, it is essential that we maintain our credibility by returning to a disinflationary path and achieving our target in the relatively near future.”

— Lisa Cook, Federal Reserve Governor (Reuters)

What’s next

The Federal Reserve's next policy meeting is scheduled for March 2026, where the central bank will decide whether to make any further changes to interest rates.

The takeaway

Governor Cook's comments suggest the Fed may be nearing the end of its rate-cutting cycle, even as financial markets expect more cuts. This highlights the ongoing debate within the central bank about the appropriate policy path, with Cook more focused on returning inflation to the 2% target than supporting further rate reductions.