- Federal Reserve Governor Lisa Cook signaled readiness to raise interest rates if inflation fails to decline, a stance that could pressure cryptocurrencies and other risk assets.
- Cook noted inflation remains too high at 3.7% on the PCE measure, nearly double the 2% target, and warned that prolonged above-target inflation risks becoming entrenched.
- The annual U.S. inflation rate fell to 3.5% in June 2026, the first drop in five months, but Cook said she would not rely on a single data point given high uncertainty.
Federal Reserve Governor Lisa Cook said she is prepared to support higher interest rates if U.S. inflation fails to come down, a policy shift that can pressure crypto and other high-risk investments. Cook made the remarks at a luncheon hosted by the Anchorage Economic Development Corporation, according to the official speech transcript.
“As 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,” Cook said, adding she is prepared to act by raising rates if necessary. The Fed targets an annualized inflation rate of 2% over the long run, while the annual inflation rate fell to 3.5% in June 2026, the first decline in five months, data shows.
However, Cook cautioned against putting too much weight on a single data point given a highly uncertain environment. She noted that the personal consumption expenditures price index rose 3.7% in the 12 months through June, nearly double the 2% target. “If I do not see signs of continued disinflation soon, I am prepared to act,” she said.
“With 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,” Cook added. Consequently, her hawkish tone signals potential headwinds for Bitcoin and other digital assets that often react to tightening monetary conditions.
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