US annual inflation in JulyFederal Reserve Governor Lisa Cook has reiterated her stance that she is prepared to increase interest rates if inflation does not show signs of easing. Speaking after the July Federal Open Market Committee meeting where rates were held steady at 3.50% to 3.75%, Cook emphasized that inflation remains above the Fed’s target of 2%, currently running at 3.7% over the past year. AdvertisementKey TakeawaysCook’s readiness to raise rates indicates that the Federal Reserve is closely monitoring inflation trends, which remain above the target level. Market pricing suggests a decrease in the likelihood of inflation being 3.1% or less in July, consistent with Cook’s stance on potential rate hikes. What to WatchThe upcoming CPI data release by the U.S. Bureau of Labor Statistics will be crucial in shaping market expectations around inflation and potential rate hikes.