Fed’s Lisa Cook ready to raise rates if inflation doesn’t slow

Federal Reserve Governor Lisa Cook reiterated her readiness to raise interest rates if inflation does not slow, warning that policymakers may not have the option to wait until inflation returns to the 2% target.

Cook noted that the waning impact of tariffs, a possible decline in oil prices, and some easing of pressures linked to the boom in artificial intelligence could help bring inflation down and remove the need for monetary tightening. Cook also said the Fed is running out of room to fight inflation, given how long it has been above the 2% target.