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Fed Governor Lisa Cook backs rate hold, warns hike if disinflation stalls

Cook said she is prepared to act if disinflation does not continue soon, emphasizing that inflation risks outweigh job-market risks.

Reported · Written up by our desk · Central Banks

FXStreet reports that Fed Governor Lisa Cook said she supported leaving interest rates unchanged at the most recent FOMC meeting while she waits for more data.

In remarks delivered at an event in Alaska, Cook said inflation risks outweigh job-market risks, and reiterated her commitment to restoring price stability.

She also warned that if she does not see signs of continued disinflation soon, she is prepared to act, adding that inflation has remained persistently high for five years though she did not rule out the possibility that inflation could cool.

The comments reinforce how Fed rate decisions can influence the US dollar, with higher rates generally supporting the currency by increasing US borrowing costs and making the dollar more attractive to international investors, FXStreet noted.

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