Federal Reserve Governor Cook believes that inflation must return to target levels as soon as possible to maintain the central bank's credibility.

Federal Reserve Governor Lisa Cook said that the central bank must bring the inflation rate back to the target level in the near future to maintain its credibility. Cook said in a speech prepared for an event in Miami on Wednesday, "My focus will remain on this issue until I see more compelling evidence that inflation is falling back to the target level in a sustainable manner - unless there is an unexpected change in the labor market." After three consecutive rate cuts late last year, the Federal Reserve last week, as expected, kept interest rates unchanged. Decision-makers raised their assessments of the economy and the labor market and indicated that they do not currently see immediate reasons to further cut interest rates. Cook said she supported the Federal Reserve's decision last week to keep interest rates unchanged because she believes the "risks are skewed towards inflation rising". Her position is in line with several other decision-makers who have signaled caution about inflation. In recent years, the U.S. inflation rate has consistently exceeded the Federal Reserve's 2% target.