Fed Governor Cook Prepares to Support Rate Hike if Inflation Doesn't Cool

According to Jin10, Federal Reserve Governor Michelle Cook reaffirmed on August 6 that she is prepared to support a rate hike if inflation fails to decelerate. She warned that persistent inflation above the Fed's 2% target risks becoming entrenched in price and wage-setting behavior, making it harder to contain. Cook noted that despite supporting the Fed's decision to hold rates steady at its July meeting, the longer inflation remains elevated, the more difficult it becomes to bring it back to target. However, she added that a potential easing of tariff impacts, declining oil prices, and relief from AI-related cost pressures could provide enough relief to avoid tightening policy.
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