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US Fed Official Ready to Raise Rates on Inflation

Lisa Cook is a leader at the US Federal Reserve. She said she is ready to act on interest rates.

This could include raising them if inflation does not slow. Inflation means prices rising over time.

Cook made her comments at an event in Alaska. Last week she joined a 9-3 vote.

The vote kept the Federal Reserve's main interest rate unchanged. The rate stays between 3.5% and 3.75%.

Cook warned that inflation has stayed above the bank's target. She said the longer this continues the harder it gets. She said it becomes more difficult to bring inflation down.

Klear Note Higher interest rates can slow spending and price growth. They can also make loans and mortgages more expensive.
Key Terms 3
  • Federal Reserve The central bank of the United States that sets interest rates.
  • interest rates The cost of borrowing money, set by the central bank.
  • inflation When prices for goods and services rise over time.
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