Fed's Cook: supply shocks have had persistent effects
TLT•Federal Reserve Governor Lisa Cook said recent supply shocks have had surprisingly persistent effects and become more salient for policy.
1. Policy response may differ
Cook said the conventional view was to look through supply shocks because tighter monetary policy would not affect oil prices or wars, while potentially slowing employment and output. She said the optimal response could now differ depending, for instance, on which sectors are affected.




