Fed’s Cook: Supply Shocks Have Been ‘Surprisingly Persistent’

Cook's framing matters because it recasts persistent supply disruptions as a standing risk to the inflation anchor rather than a transient problem, which keeps the Fed's reaction function tilted toward caution even without a stated policy path. For crypto and other risk-sensitive markets, the signal is that the disinflation narrative rests on supply normalization that has repeatedly failed to arrive on schedule. Whether expectations data start to drift is the open question; that, not any single speech, is what would test the 2% target's credibility.