Federal Reserve Governor Lisa Cook has warned that the US job market is beginning to show signs of strain, describing employment risks as a more immediate concern than resurgent inflation, Bloomberg reported.

Her remarks, delivered on Monday at the Brookings Institution in Washington, come as the Fed faces growing pressure to balance economic stability with political scrutiny.

The central bank cut its benchmark rate last week for the second time this year, aiming to sustain growth in the face of uneven data. While the move signalled confidence in the economy’s resilience, it also exposed divisions within the Fed over how far monetary easing should go. Chair Jerome Powell said the next decision in December remains “data dependent,” reflecting a lack of consensus on inflation trends and labour market strength.

Cook, addressing the audience without referring to the political backdrop, said policy decisions are “not on a predetermined path.” She described the economy as being at a “sensitive point,” with both inflation and unemployment risks heightened. Her tone suggested caution about further cuts but a clear concern over slowing job creation.

Recent indicators have pointed to a gradual rise in unemployment and weaker hiring momentum. Cook said part of that shift could be traced to declining immigration, which has slowed population and workforce growth. Still, she argued that the Fed’s latest rate cut was justified, given that “downside risks to employment are greater than upside risks to inflation.”

Inflation, she added, is likely to stay above target over the next year as the impact of President Donald Trump’s tariffs continues to filter through prices. Yet she said those tariff-driven increases should be temporary, with inflation expected to ease once the effect dissipates.