Fed’s Cook says she’d support rate hike if disinflation stalls

Federal Reserve Governor Lisa Cook said she is “prepared to act” if inflation remains too high above the Fed’s target rate.

Federal Reserve Governor Lisa Cook said she is prepared to support higher interest rates if US inflation fails to come down, a change that can pressure crypto and other high-risk investments.

Cook was speaking at a luncheon hosted by the Anchorage Economic Development Corporation, saying that while some disinflationary forces are in play, she is “prepared to act” if disinflation stalls.

“As I have described, inflation is too high, and I consider the risks to the inflation side of the dual mandate higher than the risks to the employment side at this point,” said Cook. “As such, I am prepared to act by raising rates, if necessary.”