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Fed Governor Lisa Cook backs hold, warns inflation could trigger action

Cook said she would support leaving rates unchanged while awaiting more data, but is prepared to act if disinflation does not continue.

Reported · Written up by our desk · Central Banks

FXStreet reports Fed Governor Lisa Cook said she supported holding interest rates unchanged at the most recent Federal Open Market Committee meeting, while she waits for more incoming data.

Cook added that inflation risks outweigh job market risks, and she reiterated her commitment to restoring price stability, noting that inflation has remained persistently high for five years.

In remarks at an event in Alaska, Cook warned that if she does not see signs of continued disinflation soon, she is prepared to act, without ruling out the possibility that inflation could cool.

The Federal Reserve sets US monetary policy through interest-rate adjustments, with FXStreet outlining that a higher-for-longer stance can support the US dollar, while easing would weigh on it.

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