Federal Reserve Governor Lisa Cook indicated she is prepared to support additional interest rate increases if US inflation fails to continue its downward trajectory, a stance that could add further pressure on cryptocurrencies and other risk-sensitive assets.

Speaking at a luncheon hosted by the Anchorage Economic Development Corporation, Cook acknowledged that some disinflationary forces are currently at work but emphasized her willingness to act should progress stall.

"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. "As such, I am prepared to act by raising rates, if necessary."

The Federal Reserve operates under a dual mandate from Congress to pursue price stability and maximum employment. Its long-run inflation target stands at an annualized rate of 2%. According to Trading Economics, the annual inflation rate fell to 3.5% in June 2026, marking the first decline in five months.

Cook cautioned against placing excessive weight on any single data release, citing a highly uncertain economic environment. She noted that the personal consumption expenditures (PCE) price index — the Fed's preferred inflation gauge — rose 3.7% in the 12 months through June, nearly double the central bank's 2% target.

"If I do not see signs of continued disinflation soon, I am prepared to act," Cook said.

The Fed governor also warned of the dangers posed by prolonged above-target inflation, which has now persisted for five years.

"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 said. "The longer inflation is above target, the more likely this scenario becomes."

Her comments underscore how closely markets continue to watch Fed officials' inflation assessments, since the central bank's policy path affects borrowing costs across the economy, from mortgages to corporate loans, and can shape demand for assets that are more sensitive to funding conditions. Higher interest rates typically weigh on risk assets such as equities and cryptocurrencies by increasing borrowing costs and reducing the attractiveness of speculative investments.

Cook's full remarks are available in the official speech text published by the Federal Reserve.

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