Lisa Cook, a member of the Federal Reserve (Fed), said inflation risks remain elevated and that policymakers could raise interest rates again if needed.
According to Bloomberg on the 27th, Cook said at a Stanford University event that there is a risk inflation could intensify and that the Fed is prepared to raise rates if the expected slowing in price gains does not materialize in a timely way.
However, Cook maintained that holding the benchmark rate steady for the time being is appropriate, saying inflation is expected to slow again in the coming months.
Cook warned that if inflation stays above the Fed's 2% target for an extended period, price pressures could become embedded in price and wage setting.
On the U.S. labor market, Cook said conditions are broadly stable but assessed that downside risks, including the possibility of slowing employment, are increasing.
Cook also noted that the recent $1.5 trillion (2,253 trillion won) boom in artificial intelligence (AI) investment, which has expanded in scale, could spur demand for semiconductors and advanced equipment and potentially act as a new source of inflationary pressure.