Fed's Cook Says She Is Prepared to Raise Rates if Necessary

By Jessica Coacci

Federal Reserve Governor Lisa Cook said Wednesday that she would support a rate increase if it becomes necessary to bring inflation down.

Delivering remarks in Anchorage, Alaska, Cook said inflation is too high, and while she felt it was appropriate to hold rates steady last week, she is prepared to act by raising interest rates if necessary.

Still, Cook said some disinflationary forces are already in play, which could push inflation toward the Fed's 2% target without a rate increase.

Cook said there could be some disinflation as the early months of tariff pass-through drop out of the inflation window, and oil prices, elevated from the conflict in the Middle East, could ease from their highs by the end of the year.

"However, similar to tariff policy, uncertainty remains high," the published text of her remarks said.

In addition, Cook said some of the inflationary pressure coming from the AI buildout could ease as supply chains adjust and sector-specific efficiency gains accrue.

"For these three reasons, I felt it was appropriate not to change rates while we see how these factors evolve. If I do not see signs of continued disinflation soon, I am prepared to act."

Write to Jessica Coacci at jessica.coacci@wsj.com

(END) Dow Jones Newswires

August 05, 2026 16:21 ET (20:21 GMT)