Fed's Cook: January job gains increase hopes for soft landing

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U.S. Senate Banking Committee holds hearing for Federal Reserve nominees on Capitol Hill in Washington
Dr. Lisa DeNell Cook, of Michigan, nominated to be a Member of the Board of Governors of the Federal Reserve System, speaks before a Senate Banking, Housing and Urban Affairs Committee confirmation hearing on Capitol Hill in Washington, D.C., U.S., February 3, 2022. REUTERS/Ken Cedeno/Pool

WASHINGTON, Feb 8 (Reuters) - The strong January job gains of half a million new positions coupled with moderating wage growth has increased hopes for a "soft landing" as the Fed continues with interest rate increases but the labor market powers ahead, Federal Reserve Gov. Lisa Cook said on Wednesday.

Cook said the Fed was determined to return inflation to the 2% target with further interest rate increases, but "I believe this can be accomplished without a large increase in unemployment," Cook said at an appearance organized by the Joint Center for Political and Economic Studies, a Washington think tank focused on issues important to the Black community.

The unemployment rate unexpectedly fell to 3.4% in January, and "it is possible the path of unemployment will be lower," than the 4.6% Fed officials in December projected for the end of this year.

Reporting by Howard Schneider;

Our Standards: The Thomson Reuters Trust Principles.

Thomson Reuters

Covers the U.S. Federal Reserve, monetary policy and the economy, a graduate of the University of Maryland and Johns Hopkins University with previous experience as a foreign correspondent, economics reporter and on the local staff of the Washington Post.

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