Fed's Cook Keeps Rate Hike Option Open Amid Inflation Worries
US Federal Reserve Governor Lisa Cook has signaled her readiness to support higher interest rates if inflation does not show signs of easing, highlighting the central bank's top priority of restoring price stability.
Cook made these comments in a speech on Wednesday, emphasizing that inflation remains above the Fed's 2 per cent target and warning policymakers must remain prepared to act if price pressures prove more persistent than expected.
She 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.'
Cook also noted that recent inflation readings remain a concern despite some factors that could help ease price pressures over time.