Fed Governor Cook Backs Rate Hold, Flags Possible Hike If Disinflation Stalls

Federal Reserve Governor Lisa Cook expressed support for the decision to hold rates steady at the most recent FOMC meeting, citing a need to await more economic data. She emphasized that inflation risks currently outweigh those related to the labor market.

Cook warned that if the pace of disinflation slows or reverses, the central bank could be forced to raise interest rates again. She reiterated her full commitment to restoring price stability.

The remarks reinforce a hawkish-leaning hold stance from the Fed, where policymakers are prepared to tighten further if inflation proves persistent.