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Federal Reserve Governor Cook reiterated her stance: if inflation does not slow down, she is prepared to raise interest rates and warned that decision-makers may not have the luxury of waiting for inflation to return to the 2% target. Although Cook supported the Fed's decision to keep interest rates unchanged at the July policy meeting, she cautioned that the longer inflation remains above the Fed's target, the harder it will be to curb it. Speaking at an event in Alaska, Cook stated, "If I do not see signs of sustained inflation falling soon, I am prepared to take action. With inflation being above the target for five consecutive years, the risk of inflation becoming entrenched in price and wage-setting behavior is increasing, leading to a persistent inflation that will be more difficult for us to manage." However, Cook noted that the diminishing impact of tariffs, the potential drop in oil prices, and the easing of pressures related to the AI boom might provide a buffer for inflation, thus eliminating the need to tighten policies. She emphasized that her top priority remains bringing inflation back to the Fed's target level.