Fed’s Cook says she’d support rate hike if disinflation stalls

Federal Reserve Governor Lisa Cook said she is prepared to support higher interest rates if US inflation fails to come down, a change that can pressure crypto and other high-risk investments. Cook was speaking at a luncheon hosted by the Anchorage Economic Development Corporation, saying that while some disinflationary forces are in play, she is “prepared to act” if disinflation stalls. “As I have described, inflation is too high, and I consider the risks to the inflation side of the dual mandate higher than the risks to the employment side at this point,” said Cook. “As such, I am prepared to act by raising rates, if necessary.”The US Federal Reserve is targeting an annualized inflation rate of 2% over the long run. The annual inflation rate fell to 3.5% in June 2026, the first decline in five months, according to Trading Economics. However, Cook said she would not put too much weight on a single data point, given a highly uncertain environment, adding that the personal consumption expenditures price (PCE) index rose 3.7% in the 12 months through June, nearly double its 2% target. “If I do not see signs of continued disinflation soon, I am prepared to act,” Cook said. “With five y...