Federal Reserve Governor Lisa Cook said she would be “prepared to act” if inflation stays too high above the Fed’s target, signaling that another rate increase could remain on the table if disinflation stalls.
The remarks matter for markets because expectations around Federal Reserve policy are a key input for risk assets, including crypto. Higher-for-longer interest rates can influence liquidity conditions and investor appetite, while signs of continued disinflation can shape expectations for a less restrictive policy path.
Cook’s comments underline that the Fed’s next steps remain tied to inflation progress. Rather than committing to a specific move, she framed policy action as conditional on whether inflation remains persistently elevated.
For crypto readers, the takeaway is macro-focused: US rate expectations remain an important backdrop for Bitcoin, digital assets, and broader market sentiment. Cook’s stance suggests policymakers are still watching inflation closely before easing their guard.