Federal Reserve Governor Lisa Cook has signaled she is prepared to support an interest rate increase if upcoming inflation data fails to show improvement.
Cook’s comments mark a hawkish departure from the consensus view, emphasizing that inflation remains too high and that risks to the price stability side of the dual mandate are elevated.
5% and 3.75% last week, with Cook part of the 9-3 majority that voted to hold steady.
The remarks come after the Federal Reserve maintained its benchmark borrowing rate in a range between 3.5% and 3.75% last week, with Cook part of the 9-3 majority that voted to hold steady.
Her willingness to consider tightening underscores the internal debate within the central bank regarding the pace of future policy adjustments.
Markets are reacting to the heightened uncertainty, with US Treasury yields facing upward pressure as investors reassess the likelihood of near-term rate cuts.
The 10-year yield has ticked higher, reflecting a repricing of rate expectations in light of Cook’s hawkish posture.