Cook Signals Readiness to Raise Rates as Inflation Fears Mount

US Federal Reserve Governor Lisa Cook has signaled her readiness to raise interest rates if inflation doesn't start easing in the US economy. Speaking at a recent economic luncheon, Cook said she's open to raising rates to tackle 'too high' levels of inflation.

Cook emphasized that the risks to inflation are higher than those to the job market goal, and that the Fed may need to act if price pressures don't start cooling off. She noted that inflation has overshot the 2% target, standing at 3.7% in June compared to the same month last year.

Cook also warned of the risk of entrenched inflation in price- and wage-setting behavior, making it harder for the Fed to attack. Despite this, she said the Fed is 'firmly committed to restoring price stability.'