Fed Governor Cook: Ready to Act if Inflation Does Not Slow Soon

On July 16, Federal Reserve Governor Cook stated on Wednesday that waiting for inflation to slow down for a period of time is a wise move, but if inflation does not decrease quickly, she is prepared to take action. Cook noted, "I believe we should give more time from now on to observe how inflation develops. However, I still think that the risks in the future are primarily focused on rising inflation, due to the investment boom in artificial intelligence, tariffs, and price pressures from the Iran war. If we do not see signs of inflation slowing down soon, I am ready to take action. I am fully committed to achieving our inflation target, and this commitment is unwavering." Cook compared the current situation to that of a year ago when inflation rates were significantly above the Fed's 2% target, while the job market appeared stable but posed risks of slowing employment and inflation. "I have noticed that the balance of risks has changed significantly compared to about a year ago, and currently, the risk of inflation exceeds that of employment," she stated.