Fed Governor Cook Signals Rate Hike Readiness If Inflation Persists

Cook warns entrenched inflation risks rising if targets missed, citing wage-price spiral concerns. Tariff easing and AI pressures may cushion, but hawkish stance remains.

Woofun AI reports that Federal Reserve Governor Cook reiterated her readiness to support interest rate hikes if inflation fails to decelerate. She cautioned that policymakers lack the flexibility to wait for inflation to revert to the 2% target, noting that prolonged deviations make containment increasingly difficult.

Speaking in Alaska, Cook stated she is prepared to act if inflation does not decline soon, highlighting the growing risk of entrenched inflation in price and wage-setting behaviors after five years above target.

However, she acknowledged that easing tariff effects, potential lower oil prices, and reduced AI-related pressures could mitigate inflation, potentially avoiding further tightening.