Fed Governor Cook says she's 'prepared to act' on rate hike to address, 10s -7bp

desk brief, Wed 05 Aug 2026

Treasuries (close 2026-08-04): 2s 4.2% (-5.0bp), 10s 4.63% (-7.0bp), 30s 5.18% (-5.0bp).

Tape (close 2026-08-04): VIX 16.5, 2s10s +43bp.

Narrative: Trump Says Strait of Hormuz Will Be Open 'Very Soon'

What mattered:

• Fed Governor Cook says she's 'prepared to act' on rate hike to address inflation
• Fed's Cook: It may still prove unnecessary for the Fed to hike rates
• Fed’s Cook: Risk Growing That Excessive Inflation Will Become Entrenched in Economy
• Fed’s Cook Says Ready to Raise Rates If Inflation Doesn’t Cool
• Kashkari Says Fed Should Raise Rates Now to Bring Down Inflation