Fed's Cook says she is prepared to act soon if inflation does not begin to slow

Fed Governor Cook signaled readiness to act if US inflation does not begin to slow soon, indicating a potential rate hike as early as fall 2025. She noted a notable shift in risk balance, with inflation risks now outweighing employment risks, citing the AI investment boom, tariffs, and geopolitical tensions as inflationary pressures. The next Fed policy meeting is scheduled for July 28-29, with hawkish signals likely to weigh on FII flows into emerging markets including India.