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Fed's Cook Warns: Inflation Risks Rise Amid Tariffs

2/5/2026

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Summary

Story summary

Federal Reserve Governor Lisa Cook says the Fed cannot be complacent after above-target inflation.
She warned that current inflation is disappointing and that risks tilt toward higher inflation due to tariffs.
Cook noted that the personal consumption expenditures price index (PCE) rose 2.9% over the past year, with core inflation at 3%.
Kevin Warsh, a nominee for Fed chair, urges lower rates with data-driven decisions and independence from political pressures.

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Story summary

Federal Reserve Governor Lisa Cook says the Fed cannot be complacent after above-target inflation.
She warned that current inflation is disappointing and that risks tilt toward higher inflation due to tariffs.
Cook noted that the personal consumption expenditures price index (PCE) rose 2.9% over the past year, with core inflation at 3%.
Kevin Warsh, a nominee for Fed chair, urges lower rates with data-driven decisions and independence from political pressures.