Federal Reserve Governor Lisa Cook has signaled that the central bank remains prepared to take action to curb inflation, citing persistent risks from artificial intelligence spending and global geopolitical tensions.
Her comments underscore a hawkish stance within the Fed as policymakers debate the trajectory of price stability.
Williams argued that current interest rates are "well positioned" to manage the latest price surge, reflecting a more dovish view among some Fed officials.
Cook emphasized that the central bank is unwavering in its commitment to bringing inflation back to target, warning that new drivers of price pressure could emerge.
She specifically pointed to the economic impact of AI investments and ongoing global conflicts as factors that could keep inflation sticky, requiring continued vigilance from the Federal Reserve.
The remarks stand in contrast to recent comments from New York Federal Reserve President John Williams, who indicated on Wednesday that he sees multiple signs suggesting inflation has peaked.
Williams argued that current interest rates are "well positioned" to manage the latest price surge, reflecting a more dovish view among some Fed officials.