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

Federal Reserve Governor Lisa Cook signaled Wednesday she is prepared to vote for a rate hike if inflation does not improve, adding hawkish pressure following the central bank's latest hold. Cook was part of a 9-3 majority that voted last week to maintain the benchmark rate in a range between 3.5%-3.75%.

Her comments emphasize the Fed's continued focus on price stability despite recent rate pauses. The 9-3 vote split indicates some internal disagreement over policy stance, with Cook aligning with the majority favoring patience while simultaneously keeping the door open for further tightening.

The statement comes as markets parse Fed communications for clues on the terminal rate and the duration of restrictive policy. Cook's conditional hawkishness—readiness to act unless inflation data improves—suggests incoming CPI and PCE prints will carry heightened weight in upcoming FOMC deliberations.