Cook Signals US Fed's Readiness for Rate Hikes Amid Ongoing Inflation Concerns

US Federal Reserve Governor Lisa Cook emphasized that restoring price stability remains the central bank's top priority, despite signs of resilience in the US economy. In a speech on Wednesday, Cook said inflation continues to run above the Fed's 2% target and warned that policymakers must remain ready to act if price pressures prove more persistent than expected.

Cook stated, 'I have described that inflation is too high, and I consider the risks to the inflation side of the dual mandate higher than the risks to the employment side at this point. As such, I am prepared to act by raising rates, if necessary.'

She voted to keep the federal funds rate unchanged at 3.5-3.75% at the latest Federal Open Market Committee (FOMC) meeting.