Federal Reserve Governor Lisa Cook said the central bank must bring inflation back to its target level in the near future to maintain its credibility.

Speaking at an event in Miami on Wednesday, Cook said, “Unless I see stronger evidence that inflation is consistently falling back to its target level, my focus will be here, barring any unexpected changes in the labor market.”

Fed policymakers kept the benchmark interest rate unchanged last week in a range of 3.5% to 3.75%, after agreeing to three consecutive rate cuts by the end of 2025. While keeping rates unchanged, officials upgraded their assessment of the economy and labor market and suggested they did not see the need for further rate cuts at this time.

Cook’s comments come after President Donald Trump announced his nomination of former Federal Reserve Governor Kevin Warsh as the next chair. Trump has long called for significant rate cuts by the Fed, raising concerns among many Fed watchers that the next chair will be unable to fulfill the Fed’s commitment to curbing inflation.

Warsh stated that the Federal Reserve has room to cut interest rates, believing that increased productivity can boost economic growth without triggering inflation.

Cook indicated that she supported last week’s decision to keep interest rates unchanged because she now believes “the risks are tilted towards higher inflation.” Like several other policymakers, she has issued cautious warnings about inflation, which has been above the Fed’s 2% target for several years.

“After nearly five years of inflation above target, we must maintain our credibility by returning to a deflationary path and achieving our goal in the relatively near future,” Cook stated.

She indicated that a lack of dynamism in the labor market “could make it vulnerable to downside shocks.” However, she also believes the labor market is “broadly balanced,” noting that the slight decline in the unemployment rate in December showed signs of stabilization.

“Overall, uncertainty about the outlook remains high, but I believe the three rate cuts of last year will continue to support the labor market,” she said.