Fed Governor Lisa Cook Says She Is Ready to Raise Rates if Inflation Keeps Moving in the Wrong Direction

[Financial News] Lisa Cook, a governor of the Federal Reserve (Fed), said that "inflation is moving in the wrong direction, and we are prepared to raise interest rates if that trend continues."
According to U.S. media reports on the 27th local time, Cook said at an event at Stanford University that "what I want to make clear in our risk assessment is that the upside risks to inflation remain high." She added that "it is appropriate to keep rates on hold for now," and predicted that price growth would slow again over the next few months.
She noted that if inflation remains above the Fed's 2% target for five years, there is a risk that inflationary pressure will become embedded in price and wage-setting behavior. She also stressed that if the expected disinflation does not materialize in time, "we are prepared to raise rates."
Cook also described the current U.S. labor market as "generally stable," while saying that "downside risks to employment have increased."
She also said that the recent $150 billion boom in artificial intelligence (AI) investment could become another source of inflationary pressure, especially in semiconductors and advanced equipment.
whywani@fnnews.com Hong Chaewan Reporter