Fed’s Cook Says Central Bank Must Maintain Inflation Credibility

Federal Reserve Governor Lisa Cook said it’s essential the central bank maintain its credibility by returning inflation to target in the near future.

“Until I see stronger evidence that inflation is moving sustainably back down to target, that is where my focus will be, in the absence of unexpected changes in the labor market,” Cook said in remarks prepared for an event Wednesday in Miami.

Federal Reserve Governor Lisa Cook.

Photographer: Eric Lee/Bloomberg

Fed policymakers held their benchmark interest rate steady last week in a range of 3.5% to 3.75%, after three consecutive reductions at the end of 2025. In leaving rates unchanged, officials upgraded their assessment ...