Fed's Cook signals openness to further rate hikes if disinflation stalls

Fed Governor Lisa Cook's willingness to support higher rates if disinflation stalls reinforces a hawkish reaction function. The comment raises the probability of a "higher-for-longer" policy path, typically tightening financial conditions and pressuring rate-sensitive risk assets. In the near term, this can support the US dollar and lift front-end yields while weighing on equities and high-beta crypto via a higher discount-rate regime.