Fed's Cook Warns of Inflation Entrenchment, Signals Rate Hike

Federal Reserve Governor Lisa Cook has signaled her readiness to raise interest rates if inflation doesn't start easing. Speaking at an economic luncheon in Anchorage, Alaska, she noted that the risks to inflation are higher than those associated with job market growth.

Cook emphasized the need for action on inflation, citing its potential to become entrenched in price- and wage-setting behavior. This would make it more difficult for the Fed to tackle, according to her speech prepared for delivery at the event.

The governor also referenced recent dissenting votes among officials who argued that a rate hike was necessary to bring down price pressures. However, Cook maintained that she is committed to restoring price stability and will weigh the potential effects of raising rates on the overall economy if needed.