Federal Reserve Board Governor Lisa Cook has indicated that the Fed is prepared to raise the benchmark interest rate if inflationary pressures persist.

Speaking at a public event in Anchorage, Alaska, on the 5th (local time), Governor Cook warned that "if disinflationary signals do not emerge soon, we will act." She added, "With inflation running above target for five years, the risks to price and wage setting could become entrenched."

However, Cook also suggested that additional tightening may not be necessary if inflationary pressures ease. She assessed that various factors could influence the trajectory of prices, including the waning effects of tariffs, the possibility of declining global oil prices, and demand pressures stemming from expanded investment in artificial intelligence (AI) infrastructure.

Regarding the Fed's dual mandate, Cook emphasized that price stability is currently more important than employment, stating, "Above all, we are committed to restoring price stability." She said, "While we will take into account the impact a rate hike could have on the labor market and economic growth, we will support raising rates if necessary to rein in inflation."

Cook, who voted at last month's Federal Open Market Committee (FOMC) meeting to maintain the benchmark interest rate at 3.5%–3.75%, has now publicly signaled that her stance could shift depending on future price trends.

On the same day, Minneapolis Federal Reserve Bank President Neel Kashkari reiterated the need for further rate hikes in an interview with CNBC. "Now is an appropriate time to slowly raise rates," Kashkari said, noting, "Corporate earnings, consumption, and the labor market are all robust. It is difficult to find evidence that current monetary policy is sufficiently restrictive." At last week's FOMC meeting, he voted against holding rates steady, joining Cleveland Fed President Beth Hammack and Dallas Fed President Lorie Logan in calling for a rate hike.

The market is closely watching the fact that even Governor Cook has publicly raised the possibility of a rate increase. According to the CME Group's FedWatch Tool, the interest rate futures market is pricing in a 55% probability of at least a 25-basis-point (1 bp = 0.01 percentage point) rate hike at the September FOMC meeting.

With the Fed still viewing inflation as the most significant risk factor, upcoming price and employment data are expected to serve as the key variables in determining future interest rate decisions.