High inflation is proving to be more persistent than anticipated and has created a strong case for the Federal Reserve to lift and then hold interest rates at levels that will slow economic activity, a central bank official said Thursday.
The Fed will need to keep rates at restrictive levels “until we are confident that inflation is firmly on the path toward our 2% goal,” said Fed governor Lisa Cook in remarks at the Peterson Institute for International Economics, where she made her first speech since joining the central bank’s board this May.
