Fed Governor Cook: I Will Be Ready to Support Rate Hike If Inflation Does Not Slow

BlockBeats News, August 6th. Federal Reserve Governor Cook reiterated her position, stating that if inflation does not slow down, she is prepared to raise interest rates, and warned that policymakers may not have the leeway to wait for inflation to return to the 2% target.

Although Cook supported the Fed's decision to keep rates unchanged at the July policy meeting, she warned that the longer inflation remains above the Fed's target, the harder it will be to contain.

Speaking at an event in Alaska, Cook said: "If I don't see signs of inflation falling back soon, I am prepared to take action. With inflation persistently above the target for five years, the entrenched risk of inflation in price and wage-setting behavior is increasing, making it more difficult for us to deal with sustained inflation."

However, Cook stated that the easing of tariff effects, the possibility of lower oil prices, and the alleviation of pressure related to the AI boom may provide a cushion for inflation, thereby avoiding the need for policy tightening. She said her primary task remains to bring inflation back to the Fed's target level.