Fed’s Cook says hopes current policy setting is adequate to settle inflation

WASHINGTON (Reuters) – Federal Reserve Gov. Lisa Cook said she hopes the central bank’s current target interest rate is adequate to return inflation to the Fed’s 2% target.

The Fed left interest rates unchanged in a range of from 5.25% to 5.5% at its meeting last week, and “we hope that this will be restrictive enough such that we can return to our 2% target over time,” Cook said in comments at Duke University. “But we will continue to be vigilant,” to ensure the inflation target is reached.

(Reporting by Howard Schneider)