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Fed Governor Warns: Act on Inflation Soon
15 Jul
Summary
- Fed Governor Lisa Cook is prepared to act if inflation doesn't slow.
- Inflation risks are currently seen as outweighing employment risks.
- Interest rate hike expectations are growing among Fed officials.
U.S. Federal Reserve Governor Lisa Cook stated on Wednesday that she is prepared to take action if inflation does not begin to decelerate in the near future. While she indicated a willingness to wait a bit longer for inflation trends to become clearer, Cook expressed concern that risks are strongly tilted toward higher inflation.
Cook cited the investment boom surrounding artificial intelligence, along with tariff pressures and geopolitical events, as contributing factors to potential price increases. She highlighted a significant shift in risk assessment compared to a year prior, with inflation concerns now superseding employment worries. This perspective suggests a growing consensus among Fed officials regarding the need for tighter monetary policy, as reflected in market expectations for a possible rate hike later this year. The Federal Reserve is scheduled to hold its next policy meeting on July 28-29.
