Fed's Cook says right course of action is to hold rates steady
- Risks are tilted toward higher inflation; inflation clearly moving in wrong direction.
- Prepared to raise rates if expected disinflation doesn't appear in a timely manner.
- Would be prepared to cut rates if labor market deteriorates.
- Even temporary shocks could push up inflation in medium term.
- Shocks pushing up inflation should in theory be temporary.
- AI job loss could precede AI job gains.
- Optimistic on economic growth, expect AI to boost productivity.
- Labor market 'largely stable' but downside risks are elevated.
- AI may enhance financial stability, implications of AI for cybersecurity unclear.
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