Fed's Cook: It is prudent to wait a bit longer for inflation to slow, but is prepared to act

Fed's Cook: It is prudent to wait a bit longer for inflation to slow, but is prepared to act reports on Federal Reserve Governor Lisa Cook’s remarks on policy and the outlook for inflation. Cook said it is prudent to wait longer for inflation to slow, but that the Fed is prepared to act if it does not happen soon. She described a shift in risks since last summer toward higher inflation rather than the labor market, while noting the overall risk balance appears stable. She said there is reason to expect disinflation to continue, but risks remain, including tariffs, the Middle East conflict, and AI-related investment. Cook also emphasized that inflation expectations remain anchored, provided monetary policy stays appropriate, and that policymakers cannot lose focus. The broader context includes a Supreme Court ruling on June 29 that allowed Cook to remain on the Federal Reserve Board after the administration failed to follow required procedural protections to remove her.