Cook Signals Fed Prepared to Hike Rates if Inflation Fails to Ease

US Federal Reserve Governor Lisa Cook has emphasized that restoring price stability remains the central bank's top priority, despite signs of resilience in the US economy.

Cook stated in a recent speech that inflation continues to run above the Fed's 2% target and warned policymakers must remain ready to act if price pressures prove more persistent than expected.

She noted that tariffs, geopolitical developments, and investment related to artificial intelligence are among the factors influencing the inflation outlook, while emphasizing the need for anchored inflation expectations.

Cook has been a vocal advocate for rate hikes if necessary, saying she is prepared to 'act by raising rates' to combat inflation.