Federal Reserve Governor Lisa Cook said she is prepared to support higher interest rates if US inflation fails to come down, a change that can pressure crypto and other high-risk investments. <\/p>\n
Cook was speaking<\/a> at a luncheon hosted by the Anchorage Economic Development Corporation, saying that while some disinflationary forces are in play, she is \u201cprepared to act\u201d if disinflation stalls. <\/p>\n \u201cAs I have described, inflation is too high, and I consider the risks to the inflation side of the dual mandate higher than the risks to the employment side at this point,\u201d said Cook. \u201cAs such, I am prepared to act by raising rates, if necessary.\u201d<\/p>\n The US Federal Reserve is targeting an annualized inflation rate of 2% over the long run. The annual inflation rate fell<\/a> to 3.5% in June 2026, the first decline in five months, according to Trading Economics. <\/p>\n However, Cook said she would not put too much weight on a single data point, given a highly uncertain environment, adding that the personal consumption expenditures price (PCE) index rose 3.7% in the 12 months through June, nearly double its 2% target. <\/p>\n \u201cIf I do not see signs of continued disinflation soon, I am prepared to act,\u201d Cook said. <\/p>\n \u201cWith five years of above-target inflation, the risk grows that higher inflation may become entrenched in price- and wage-setting behavior, leading to persistence that would be much harder for us to attack. The longer inflation is above target, the more likely this scenario becomes.\u201d<\/p>\n Related: <\/strong><\/em>US hints at more yen intervention: Five things to know in Bitcoin this week<\/strong><\/em><\/a><\/p>\n Related:<\/strong> Bitcoin price<\/a> \u00b7 BTC live chart<\/a> \u00b7 Ethereum price<\/a> \u00b7 ETH gas fee<\/a> \u00b7 Bitcoin price today<\/a> \u00b7 Top 10 cryptocurrencies<\/a><\/p>\n