Fed Governor Lisa Cook ready to raise rates if inflation does not ease
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Federal Reserve Governor Lisa Cook said on Thursday the central bank is prepared to raise interest rates further if inflation fails to show clear signs of slowing. Her comments reinforce the Fed's hawkish stance as it monitors incoming economic data.
Policy Warning
Cook, in a speech delivered on Thursday, emphasized that the Federal Open Market Committee will not hesitate to act if inflation remains persistently above the 2% target. 'We are prepared to raise rates further if inflation doesn't start easing,' she said. The governor underscored that the path of monetary policy will depend on incoming data and the evolving outlook.
Data-Driven Approach
Cook stressed that future rate decisions will be guided by economic indicators, particularly inflation and labor market reports. She noted that while the economy remains resilient, the path to the 2% inflation target has been bumpy. The Fed governor said she is closely watching measures of underlying price trends for signs of durable cooling.
What's Next
The Fed's next policy meeting is scheduled for mid-September, where officials will review fresh inflation and employment data. It remains unclear whether persistently sticky prices will force another rate increase or if the central bank will opt to hold steady.
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Fed Governor Lisa Cook ready to raise rates if inflation does not ease
