Fed governor Cook said she is prepared to support further rate hikes if inf does
not ease, warning policymakers may not have room to wait for inf to return to
the Fed's 2% target. She supported the Fed's decision to keep rates unchanged at
the July meeting but said the longer inf remains above target the harder it will
be to rein in, and she would act if she does not soon see sustained declines.
Cook warned five consecutive years of above-target inf raises the risk it
becomes entrenched in price- and wage-setting. She added that fading tariff
effects, potential oil-price declines and easing AI-related cost pressures could
provide a buffer that might reduce the need for additional tightening, but her
top priority remains returning inf to the Fed's target.
