Cook Signals Readiness for Rate Hike as Inflation Risks Weigh Heavier

Federal Reserve Governor Lisa Cook has signaled that she is prepared to raise interest rates if necessary. In a speech in Anchorage, Alaska, Cook emphasized that inflation remains too high and risks to price stability outweigh those to employment.

Cook's comments suggest that support for the pause on rate hikes may weaken quickly unless upcoming inflation data confirm that price pressures are easing. The Federal Reserve held interest rates unchanged last week with a 9-3 vote, with Cook supporting the decision to maintain the federal funds target range at 3.5% to 3.75%.

Cook argued that policymakers needed more time to assess several competing forces affecting inflation, including the diminishing impact of tariffs, the energy supply shock linked to the Iran conflict, and rising demand associated with the artificial-intelligence investment boom.