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Fed Governor Cook says she's 'prepared to act' on rate hike to address inflation
CNBC • • business
Key Points:
- Federal Reserve Governor Lisa Cook expressed readiness to support an interest rate hike if inflation numbers do not improve, emphasizing that inflation remains too high.
- Cook highlighted that while June data showed some easing in inflation due to lower energy prices, a single data point should not influence policy given inflation is still above the Fed's 2% target.
- She voted to keep the borrowing rate steady last week, preferring to observe the effects of tariffs, energy supply shocks, and AI-related pressures on prices before acting.
- Cook warned that prolonged above-target inflation risks becoming entrenched in wage and price-setting behaviors, making it harder to control in the future.
- She stressed that unlike other situations, the current environment does not allow the Fed the luxury of waiting longer before potentially raising rates.
