Lisa Cook said she is prepared to support a rate increase unless inflation shows continued disinflation soon, arguing price risks now outweigh employment risks.
June inflation eased largely because energy prices fell, but Cook warned against overreading one month while inflation remains well above the Fed's 2% target after five years above goal.
Cook joined last week's 9-3 vote to hold the benchmark rate at 3.5%-3.75%, saying policymakers needed more time to gauge fading tariff effects, the Iran war energy shock and AI-related price pressures.
Markets now see a possible move as soon as September, with higher odds for October, and Minneapolis Fed President Neel Kashkari also said Wednesday that higher rates are still needed.