Cook's remarks add to a building chorus of Fed officials flagging openness to tightening, a shift traders will read as hawkish after last week's split decision to hold rates steady. With three dissenting votes already on record favouring a hike, markets may start pricing higher odds of a rate increase at the next meeting, particularly if upcoming inflation prints disappoint. The dollar and short-term yields are the most likely near-term movers on this kind of commentary, while equities could face pressure if the narrative of an increasingly divided, inflation-focused Fed takes hold. Cook's acknowledgment that tariffs, the Middle East conflict and AI-related investment could still ease price pressures leaves room for a less aggressive path, tempering the immediate hawkish read.---Cook opens the door to a Fed rate hike, citing dwindling patience with elevated inflation even as she leaves room for prices to cool on their own.Summary:Fed Governor Lisa Cook says she would support raising rates if inflation does not moderateCook views inflation risks as outweighing risks to the job marketShe warns the Fed is running out of room to keep waiting for disinflationCook was among the majority who voted to hold rates steady last week, a decision that drew three dissents favouring a hikeOther officials, including New York Fed's Williams and Philadelphia Fed's Paulson, have also signalled openness to hikingCook says AI has not yet caused notable job losses and the labour market remains resilientFederal Reserve Governor Lisa Cook said on Wednesday she is prepared to support raising the central bank's benchmark interest rate if inflation does not resume its downward trend, citing mounting risk that elevated prices could become embedded in the economy.Speaking in prepared remarks to the 2026 Economic Luncheon of the Anchorage Economic Development Corporation, Cook said the risks tied to inflation currently outweigh the risks to the labour market, and that she would back a hike "if it becomes necessary" to restore price stability. She stressed that outcome is not guaranteed, noting inflation may still cool without further tightening.Cook argued the Fed has limited room left to wait given how long inflation has run above the central bank's 2 percent target. She warned that persistent overshoot risks getting locked into wage and price setting behaviour, a dynamic she said would be far harder to unwind later. Even so, Cook pointed to tariffs, the conflict in the Middle East and heavy investment tied to artificial intelligence as forces that could still ease price pressures without additional rate action.Her comments follow last week's Federal Open Market Committee decision to hold the federal funds rate in a range of 3.5 to 3.75 percent, a call that drew three dissenting votes from officials who wanted an immediate increase. Cook was among the majority who backed the pause, saying it was appropriate to see how inflation trends evolve before acting further.She is not alone in flagging a more hawkish stance. New York Fed President John Williams and Philadelphia Fed President Anna Paulson have both signalled willingness to raise rates if conditions warrant, adding to a more divided tone among policymakers. Fed Chairman Kevin Warsh, by contrast, has offered little public guidance on the likely path for rates.Cook also addressed the labour market and consumer sentiment, saying job conditions have held up and that predictions of significant AI driven job losses have not yet materialised, though she cautioned risks remain. She linked the weak mood among consumers partly to persistently high inflation, underscoring the stakes for the Fed as it weighs its next move. ---Next FOMC is mid-September: This article was written by Eamonn Sheridan at investinglive.com.