Fed's Cook Says Rate Hikes Remain on the Table as Inflation Stays Elevated

Federal Reserve Governor Lisa Cook said she is prepared to raise interest rates if inflation continues to move higher, a stance that runs against widespread market expectations for eventual rate cuts. The comments reflect rising concern inside the central bank that inflation remains stubbornly above the Fed's 2% target. Cook has repeatedly stressed her focus on price stability. In a Nov. 3, 2025 speech at Brookings, she reaffirmed her commitment to the 2% goal and said she would be ready to respond forcefully if inflation failed to cool. On Feb. 4, 2026, she signaled a preference for keeping the policy rate steady while still pointing to ongoing inflation risks. Cook's tenure has also drawn political and legal attention. Her seat has faced scrutiny and challenges, including past attempts by the Trump administration to remove her, efforts that were blocked by the courts. In separate remarks on May 8, 2026 at the Central Bank of West African States Conference in Dakar, Senegal, Cook discussed the expanding role of tokenized assets. She said the market capitalization of tokenized assets in the U.S. has climbed to roughly $25 billion, more than doubling from the prior year. Cook characterized tokenization as a complement to traditional finance, citing potential benefits such as faster cross-border payments and improved collateral mobility.