Lisa Cook Warns Inflation to Stay High in 2026 Amid Tariffs as Trump Seeks Her Removal
Federal Reserve Governor Lisa Cook says tariff pressures will keep U.S. inflation elevated next year and vows decisive action if price impacts intensify.
Federal Reserve official Lisa Cook — whom Donald Trump is seeking to remove — warned on Monday that inflation is likely to remain high in the United States next year due to tariffs.
Speaking at the Brookings Institution in Washington, Cook said, “My conversations with business leaders suggest that the pass-through of tariffs to consumer prices is not yet complete.” She noted that many companies have adopted a strategy of depleting existing inventories at lower prices before raising consumer costs, while others are waiting for uncertainty over tariffs to ease before increasing prices.
Cook added, “Therefore, I expect inflation to remain elevated over the coming year,” but pledged to “be ready to act forcefully” if the impact of tariffs proves stronger than expected.
Supreme Court to Hear Lisa Cook’s Case Against Trump in January 2026
Separately, Cook expressed “deep gratitude” for the support she has received amid her legal dispute with Trump. She declined to comment further on the case but stated, “I will continue to carry out my duties on behalf of the American people.”
In August, Trump ordered Cook’s dismissal from her position on the Federal Reserve Board, alleging mortgage fraud. However, the Supreme Court immediately suspended her removal and allowed her to remain in her post temporarily while the case proceeds.
The conservative-majority Court, after receiving Trump’s appeal, announced that it will begin hearing the case in January 2026.
Lisa Cook — the first Black woman ever appointed as a Federal Reserve governor — was nominated by former Democratic President Joe Biden.
