Federal Reserve Governor Lisa Cook signals readiness to raise interest rates if U.S. inflation remains high
Federal Reserve Governor Lisa Cook stated on Wednesday that she is prepared to raise interest rates if inflation does not continue to improve. Speaking at a luncheon in Anchorage, Alaska, Cook noted that current inflation risks are higher than employment risks, as the personal consumption expenditures price index rose to 3.7% through June, nearly double the Federal Reserve's 2% target. Cook emphasized that prolonged high inflation could become entrenched in price and wage-setting behavior, making it harder to address in the future. While acknowledging stable labor market growth and output growth, she expressed a commitment to prioritizing price stability. She also identified the Middle East conflict and the artificial intelligence buildout as key drivers of recent inflationary pressures. The administration announced that President Trump had previously attempted to remove Cook from the board of governors, a move blocked by the Supreme Court. Despite the administration's efforts to favor lower rates, Cook remains focused on ensuring inflation returns to and stays at the target level.