Washington DC [US], August 6 (ANI): US Federal Reserve Governor Lisa Cook has said she is prepared to support higher interest rates if inflation does not begin to move lower, underscoring that restoring price stability remains the central bank's top priority despite signs of resilience in the US economy.

In a speech on Wednesday, Cook said inflation continues to run above the Federal Reserve's 2 per cent target and warned that policymakers must remain ready to act if price pressures prove more persistent than expected.

She stated '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. As such, I am prepared to act by raising rates, if necessary'.

Although she voted to keep the federal funds rate unchanged at 3.5-3.75 per cent at the latest Federal Open Market Committee (FOMC) meeting.

Cook said recent inflation readings remain a concern despite some factors that could help ease price pressures over time. She noted that tariffs, geopolitical developments and investment related to artificial intelligence are among the factors influencing the inflation outlook, while emphasising that the Federal Reserve must ensure inflation expectations remain anchored.

The Fed Governor also pointed to the resilience of the US economy and labour market, saying there has so far been little evidence that rapid advances in artificial intelligence have resulted in widespread job losses. At the same time, she acknowledged that many households remain pessimistic because inflation continues to weigh on purchasing power.

Her remarks come at a time when financial markets are closely watching signals from Federal Reserve officials for clues on the future path of US interest rates after the central bank left policy rates unchanged at its latest meeting. While policymakers have held rates steady, several officials have indicated they remain prepared to tighten policy further if inflation does not return towards the Fed's target.

Cook's comments are significant because they reinforce the message that the Federal Reserve's future policy decisions will remain data dependent, with inflation continuing to be the key factor guiding interest rate decisions.

Lisa Cook has also been in the spotlight for reasons beyond monetary policy. Last year, she became involved in a legal battle with US President Donald Trump after he sought to remove her from the Federal Reserve Board over allegations of mortgage fraud, which Cook denied. She challenged the move in court, and the US Supreme Court allowed her to remain in office while lower courts continue to consider the case.

US Chief Justice John Roberts earlier in ruling stated the President's process for seeking Cook's removal failed to meet minimum procedural standards.

'The President's post did not suggest that a response from Cook would be appropriate, nor did it even provide a clear account of the charge made against her. It instead read simply, 'Cook must resign, now!!!' and linked to a news article,' Roberts wrote in its ruling.

'That will not do. At minimum, Cook was entitled to some explanation of the evidence at issue, some avenue for a response, and a deadline by which a response would be due,' it added. (ANI)