Trump had moved in August to fire Cook over allegations of mortgage fraud, although the Supreme Court has barred the president from immediately ousting her.
The court awaits oral arguments in January, allowing Cook to remain in her post at least until the case is heard.
Cook is the first Black woman on the Fed’s powerful board of governors, and her case is set to have broader ramifications for the independent central bank.
On Monday, she added that even though the effects of tariffs on costs should be one-off, with inflation likely to continue cooling once the full impact has played out, there remains a risk of persistent effects.
The Fed has a long-term inflation target of 2 per cent.
Cook also expects the ongoing government shutdown to weigh on economic activity this quarter, with possible spillover effects in the private sector. But she believes these should be “largely temporary.”
For now, Fed officials continue balancing between the risks of higher inflation and a sharply weakening labour market.
“Every meeting, including December’s, is a live meeting,” said Cook. The Fed’s next policy meeting is set for Dec 9 to Dec 10.
Last week, the Fed made a second straight interest rate cut, a decision Cook said she backed as “the downside risks to employment are greater than the upside risks to inflation”.
