Fed's Cook says ready to raise rates if inflation doesn't start easing

The Fed governor also said in her speech that the sour mood of consumers is tied to a number of factors including inflation. She also said that thus far “the most dire predictions about AI job losses have not materialized,” even as risks remain.

Cook was among the officials who voted in favor last week of the central bank keeping its 3.5% to 3.75% federal funds target rate range unchanged despite inflation pressures standing well above the 2% target.

That decision to keep rates steady garnered three dissenting votes from officials who argued that a rate hike was needed now to help bring price pressures down. Over recent days, officials like New York Fed President John Williams and Philadelphia Fed leader Anna Paulson have signaled an openness to raising rates if needed.