Fed Gov Cook says rates should hold for now but flags hike risk on stubborn inflation
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Fed Governor Cook says holding rates steady is right for now but warns she is prepared to hike if inflation fails to ease, citing tariffs, Iran war, and AI investment as key price pressures. Summary: Source: Federal Reserve Governor Lisa Cook, remarks prepared for the AI policy f
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Feds Collins:It’s possible the Fed will need to hike rates to cool inflation pressures
The desk interprets recent comments from Fed Governor Susan Collins as indicative of a more hawkish stance regarding interest rates, emphasizing the need for sustained restrictive policy to combat persistent inflation pressures. Per the full note [source], Collins highlighted that the Fed may need to hike rates further to achieve its 2% inflation target, particularly in light of ongoing geopolitical tensions that could exacerbate inflation. This aligns with our view that the Fed is unlikely to pivot towards rate cuts in the near term, despite hopes for easing later this year. The broader market consensus appears to be split, with some firms anticipating a more dovish approach as inflationary pressures potentially cool in the coming months.