Fed’s Cook opens door to rate hike if US inflation stays high
What's next: Markets are pricing a possible move as soon as September, with June inflation still at 3.7%, well above the Fed's 2% goal.
Federal Reserve Gov. Lisa Cook said Wednesday she is prepared to support a rate hike if inflation does not keep easing, adding that price pressures remain too high and could become entrenched after years above target. Cook spoke in Anchorage, Alaska, a week after the Fed voted 9-3 to hold its benchmark rate at 3.5% to 3.75%. She said June inflation cooled partly because of falling energy prices, but warned against reading too much into one month of data. Cook cited tariffs, an energy supply shock tied to the Iran war and spending linked to the AI buildout as factors still affecting prices. She said she backed holding rates steady last week to see whether those pressures fade, but stressed she is firmly committed to restoring price stability.