Cook Warns: Rate Hike Not Off Table Despite Steady Rates

Federal Reserve Governor Lisa Cook said on Tuesday that interest rates are likely to stay steady, but she did not rule out a rate hike if inflation progress stalls. Speaking at an event in New York, Cook emphasized that the current policy stance is 'well positioned' to manage economic uncertainty.

Cook noted that with inflation still above the Fed's 2% target, the committee can afford to wait for clearer signals before adjusting rates. The labor market remains resilient, giving policymakers room to be patient.

However, she explicitly stated that 'a rate hike is not off the table' if disinflation stalls or reverses, underscoring the Fed's commitment to price stability. This hawkish counterpoint injects a note of caution into the outlook for investors and consumers.