world-economy

Fed Governor Cook Signals Readiness to Raise Rates Unless Inflation Improves

Federal Reserve Governor Lisa Cook said Wednesday she stands ready to support an interest rate increase if inflation fails to decline further. Speaking in Anchorage, Alaska, Cook indicated inflation remains elevated and poses greater risks than employment concerns under the central bank's dual mandate. Though June data showed modest disinflation driven largely by energy price declines, Cook cautioned against drawing conclusions from a single month when price increases continue outpacing the Fed's 2% target. Cook was part of a 9-3 majority that voted last week to maintain rates steady. She cited a desire to observe how tariff impacts, energy supply disruptions, and pricing pressures evolve. She warned that five years of above-target inflation threatens to embed higher expectations in wage and price-setting behavior, becoming increasingly difficult to combat. Markets currently price October as the most likely month for rate action, though some scenarios suggest a September move remains possible.