Cook Signals Openness to Rate Hike to Tackle Inflation Risks

Federal Reserve Governor Lisa Cook has hinted that she is open to raising interest rates if inflation does not start easing in the US economy. Speaking at a recent economic event, Cook said that she would support an increase in rates if it becomes necessary to bring down inflation.

Cook pointed out that the risks to inflation are higher than those to job market growth, and warned that 'inflation may become entrenched in price- and wage-setting behavior, leading to persistence that would be much harder for us to attack.'

She also noted that the Fed has limited space to deal with inflation, given how long it has overshot the 2% target. As of June, inflation stood at 3.7%, according to the personal consumption expenditures price index.

Cook's comments come as some officials have signaled an openness to raising rates if needed, while others have argued for a rate hike now to help bring down price pressures.