Inflation ‘unacceptably high,’ must be Fed’s primary focus, says Federal Reserve governor

No one has to tell anyone who shops for groceries or pays the rent that inflation is out of whack. But everyone is listening these days to how officials at the Federal Reserve describe inflation, searching for clues for just how much higher the Fed could drive interest rates.

Federal Reserve Governor Lisa D. Cook, who previously taught economics and international relations at Michigan State University, visited Detroit Wednesday and acknowledged that “inflation remains much too high.” But she stopped short of saying how far the Fed will have to go after the six rate hikes consumers and businesses saw so far in 2022. And she did not say how long the Fed would keep interest rates high and restrictive. Much, she said, will depend on the progress that’s made to bring inflation down.

“But rest assured, we will keep at it until the job is done,” Cook said, speaking at a Detroit Economic Club meeting held at the Masonic Temple.

This week, Fed officials appeared to be reading off one script.

Inflation remains top of mind for most consumers — and the Federal Reserve. On Monday, New York Fed President John Williams called inflation the No. 1 economic concern across the globe and noted that “those who can least afford the rise in costs for food, housing and transportation suffer the most.”