Fed Governor Lisa Cook Signals Rate Hike if US Inflation Stays Elevated

TLDR

• Fed Governor Lisa Cook said rate hikes remain possible if inflation does not continue easing.
• The Federal Reserve kept interest rates unchanged at 3.5% to 3.75% at its latest meeting.
• Cook said inflation risks currently outweigh risks to the labor market and require close monitoring.
• June PCE inflation stood at 3.7%, remaining well above the Fed’s 2% target.
• Cook expects tariff, oil, and AI-related price pressures to ease but remains ready to act if needed.

Federal Reserve Governor Lisa Cook said the US central bank is prepared to raise interest rates if inflation does not continue moving lower. Her comments come as policymakers keep rates unchanged while monitoring price pressures and broader economic conditions.

Cook Says Inflation Remains the Primary Concern

Lisa Cook said inflation remains above the Federal Reserve’s 2% target and continues to present the greater risk to the economy compared with employment. She stated that policymakers are prepared to tighten monetary policy if inflation fails to show additional progress.

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