Fed Governor Lisa Cook Signals Readiness To Raise Interest Rates

Federal Reserve Governor Lisa Cook said she is prepared to support higher interest rates if inflation fails to cool further, a stance that could weigh on crypto and other high-risk investments. Speaking at a luncheon hosted by the Anchorage Economic Development Corporation, Cook said some disinflationary forces remain in play, but she is ready to act if progress stalls. “I consider the risks to the inflation side of the dual mandate higher than the risks to the employment side at this point,” she said.

Inflation Data Still Above Target

The Fed targets 2% annual inflation over the long run. US inflation fell to 3.5% in June 2026, its first decline in five months, according to Trading Economics. Cook cautioned against reading too much into one data point, noting the personal consumption expenditures price index rose 3.7% over the same 12-month period, nearly double the Fed’s goal.

Cook Flags Risk Of Entrenched Inflation

“If I do not see signs of continued disinflation soon, I am prepared to act,” Cook said, warning that five years of above-target inflation raises the chance it becomes embedded in wage and pricing behavior, making it harder to control the longer it persists.