Fed Governor Cook says she is ready to raise rates if inflation does not improve

Federal Reserve Governor Lisa Cook told a speech in Anchorage, Alaska, that she is prepared to back an interest-rate increase if inflation does not continue to ease. > "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," she said. > "If I do not see signs of continued disinflation soon, I am prepared to act." Cook noted that June data showed a slowdown in inflation, largely due to a sharp drop in energy prices, but warned against drawing firm conclusions from a single month. She emphasized that the pace of price growth remains well above the Fed’s 2% target and that prolonged above-target inflation could become embedded in price- and wage-setting behavior, making it harder to reverse. She was among the nine governors who voted to keep the benchmark rate in the 3.5%-3.75% range, explaining that her vote reflected uncertainty about the lingering effects of tariffs, an energy supply shock linked to the conflict in Iran, and pressures from the rapid expansion of artificial-intelligence technologies. Cook added that unlike other economic environments, the current situation does not allow the Fed the luxury of waiting. The governor’s remarks come as the Fed monitors upcoming inflation reports to decide whether further policy tightening will be needed.