Federal Reserve's Lisa Cook tells Anchorage business crowd she's 'firmly committed' to bringing down inflation

Aug. 5—A Federal Reserve governor told Anchorage business leaders on Wednesday that she's looking to raise interest rates if U.S. inflation doesn't come down.

Lisa Cook, who this year survived an effort by President Donald Trump to oust her from the board of governors for the nation's central bank, was the keynote speaker at a luncheon held by the Anchorage Economic Development Corp.

Cook, the first Black woman to serve on the Federal Reserve board, plays a key role in the nation's economy in part by voting to set interest rates to address inflation.

Jon Bittner, head of the Anchorage Economic Development Corp., said this might have been the first time a Federal Reserve governor has spoken at an Alaska event.

They often don't make a lot of appearances anywhere, he said.

"They're very careful about what they say because everything they say is analyzed by Wall Street and the financial industry, and their remarks have impact on the national and global economies," he said.

Cook told the audience, about 1,300 people at the Dena'ina Civic and Convention Center, that the nation's inflation rate gas been "above target" for five years.

The high inflation risks becoming "entrenched" and much harder to deal with the longer it goes unaddressed, she said.

The rising costs have been a burden on households and helped cause a disconnect between the overall stable health of the U.S. economy, and contributed to negative economic views held by many Americans, she said.

The low sentiment is also due in part to fears about AI taking jobs in the future and low hiring rates, even though the labor market is resilient, she said.

The costs for new houses and rent have also soared and outpaced wage growth in most of the country, along with other key areas such as education, healthcare, elder care and childcare, she said.

"In sum, the reasons for low sentiment are real and are deeply concerning," she said. "They require a varied and broad policy approach, largely outside the scope of monetary policy. But we have our part to play. As a monetary policymaker, I believe that the best thing we can do in our roles is to ensure that inflation returns to and stays at target."

"If you take away one thing from this talk, I hope it is that I am firmly committed to restoring price stability," she said.

The Federal Reserve and the debate over interest rates has gained national attention under Trump, who has been clear about favoring lower interest rates to support lower borrowing costs, even though many experts fear that could make inflation worse.

Trump unsuccessfully sought to remove Cook from the board last year by accusing her of mortgage fraud in a move that critics said was designed to handicap the board's independence.

The U.S. Supreme Court in June blocked the president's attempt and sent the issue to the lower courts, where Cook can challenge the allegations.

On Wednesday, Cook made no mention of that dispute. She declined to answer questions from a reporter after the meeting.

Economists in the audience said they were excited to hear from someone with such a prominent role in the U.S. economy.

Brett Watson said he and a fellow economist with the University of Alaska system, Kevin Berry, eagerly passed notes back and forth commenting on Cook's remarks as she spoke.

"It's exciting to hear from someone with that kind of national profile on these issues and to hear insightful remarks about the U.S. economy and the state's economy," Watson said.

Nolan Klouda, an economist and policy director for Anchorage Mayor Suzanne LaFrance, said he appreciated hearing Cook's take on how people can have a poor view of the economy even as it's generally stable.

"It's really cool to have someone of her stature and technical ability speak to (issues about) our economy," he said.

Cook noted that Alaska's economy is uniquely affected by the oil industry, with higher energy costs producing a double-edge effect of boosting government revenue and industry spending while also hitting consumers' pocketbooks.

[Alaska lost federal jobs at one of the highest rates among states in 2025, report finds]

Cook, turning in her speech to the Federal Reserve's dual responsibility of maximum employment and stable prices, said inflation in the U.S. "is just too high."

She said the personal consumption expenditures price index has risen to 3.7% over the last 12 months through June, nearly double the Federal Reserve Board's long-term target of 2%.

Cook was among the Federal Reserve officials who last month voted to keep the federal funds target rate at 3.5% to 3.75%.

But she said she's "prepared to act by raising rates if necessary."

She said the "labor market and output growth are currently stable."

"In June, the unemployment rate was 4.2%," she said. "That rate has barely changed from a year earlier and is consistent with what many economists believe is the natural rate of unemployment."

Also, "overall economic growth in the U.S. remains solid this year," she said. "After being adjusted for inflation, output grew 1.8% through the first half of the year and is on track to grow at a faster pace than the second half."

In considering a rate raise, she said she would think about how that "would negatively affect that stability" in the labor market and output growth.

"Still, I would support an increase if it becomes necessary to bring inflation down," she said.

She said inflation pressure in part has come from "two unexpected sources."

"The Middle East conflict has driven the cost of energy and certain other goods higher, and companies are ramping up capital spending to build out AI infrastructure," she said. "That investment wave has lifted prices for semiconductors, high-tech equipment, software and utilities. Taken together, these developments have shifted the balance of risks toward inflation and away from the labor market."

She said there may be some potential factors that could help ease inflation in the months ahead, including potential relief in tariff pressures and a reduction in hostilities in the Middle East, helping lower energy prices.

The U.S. Supreme Court in February limited Trump's ability to implement sweeping tariffs, though he's continued to impose tariffs of 10% to 12.5% on dozens of countries.

"We should see some disinflation as the early months of tariffs pass-through drop out of our inflation window," she said. "However, the exact path of tariff policy remains uncertain."

Also, "inflationary pressure" from the AI buildout could also ease, she said.

Bittner, head of the Anchorage Economic Development Corp., said he did not know why Cook was in Alaska.

He said the state falls under the purview of the Federal Reserve Bank of San Francisco, which coordinated Cook's trip to Alaska.

Officials there reached out to Bittner to ask if they knew of any events where Cook could speak during a trip to Alaska, and he offered up his group's luncheon.

"She just happened to be in town at the time of our meeting, so that was really lucky on our part," he said.

[In Fairbanks, Justice Ketanji Brown Jackson says work ethic and determination propelled her to nation's highest court]

© 2026 Anchorage Daily News. Visit www.adn.com. Distributed by Tribune Content Agency, LLC.