Federal Reserve Governor Lisa Cook said she is prepared to support higher interest rates if US inflation fails to come down. She was speaking at a luncheon hosted by the Anchorage Economic Development Corporation. The Fed is targeting an annualized inflation rate of 2%, while the personal consumption expenditures price (PCE) index rose 3.7% in the 12 months through June. Cook added that she would not put too much weight on a single data point given a highly uncertain environment, and that the longer inflation remains above target, the greater the risk that it may become entrenched in price- and wage-setting behavior.
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