Fed's Cook: Ready to Raise Rates if Inflation Persists

Fed Governor Cook Warns of Rate Hike If Inflation Stays High

Federal Reserve Governor Lisa Cook stated that while holding rates steady is appropriate for now, she is prepared to raise rates if inflation does not ease. She cited tariffs, the Iran war, and AI investment as key drivers of higher prices.

Inflation Moving in Wrong Direction

Speaking at a policy forum at Stanford, Cook noted that inflation is clearly moving in the wrong direction. Although the effect of last year's tariffs should fade, oil prices from the Iran war and demand from AI data centers are putting upward pressure on prices and wages.

Labor Market Stable but Risks Remain

Cook described the labor market as largely stable but warned that rapid AI adoption could lead to job losses before gains. She would only consider rate cuts if the job market deteriorates significantly.