Fed Governor Cook says she's 'prepared to act' on rate hike to address inflation

📰 source: cnbc_topnews · 💼 business

federal reserve governor lisa cook said wednesday she's ready to support an interest rate hike unless inflation improves. speaking in anchorage, alaska, cook called inflation 'too high' and said risks to the inflation side of the dual mandate outweigh employment risks. she voted with the 9-3 majority last week to hold rates at 3.5%-3.75%.

cook acknowledged june data showed easing inflation, largely from a sharp slide in energy prices, but warned against reading too much into a single data point with prices running well above the fed's 2% goal. 'if i do not see signs of continued disinflation soon, i am prepared to act,' she said. she cited five years of above-target inflation and the risk it becomes entrenched in price- and wage-setting. earlier, minneapolis fed president neel kashkari, one of three dissents, told cnbc higher rates are still necessary. markets see possible action as soon as september, with higher odds for october, per cme's fedwatch.

why it matters: top fed official ready to hike unless inflation cools, signaling rates could rise again and pressuring bonds and equities.

source: cnbc_topnews
sentiment: -0.45 · impact: 0.85