Cook Signals Rate Hike Readiness Amid Persistent High Inflation

Federal Reserve Governor Lisa Cook is ready to support higher interest rates if inflation does not decrease. Speaking at an Anchorage Economic Development Corporation event in Alaska, Cook said that inflation remains above the central bank's target of 2 percent and has been for over five years.

Cook pointed out that PCE (Personal Consumption Expenditures) inflation was 3.7 percent over the past year through June, while core inflation stood at 3.3 percent. While she didn't call for an immediate rate hike, Cook warned that the Fed may not have much time to wait.

The remarks came after the Federal Open Market Committee (FOMC) decided on July 29 to keep the benchmark interest rate between 3.50 and 3.75 percent. The vote was 9-3 in favor of holding rates steady, with three members preferring a quarter-point increase.