By Howard Schneider

WASHINGTON, July 15 (Reuters) – U.S. Federal Reserve Governor Lisa Cook said on Wednesday she is “prepared to act” if inflation does ‌not soon begin to slow, though she is willing to wait “a ‌bit more time” for that to happen.

“I see it as prudent to give a bit more ​time to observe how inflation unfolds from here. Going forward, though, I believe the risks continue to be strongly weighted toward higher inflation,” because of the investment boom around artificial intelligence and price pressures from tariffs and the U.S. war ‌with Iran, Cook said in ⁠remarks prepared for delivery to the Exchequer Club of Washington, D.C.

“If we do not see signs of disinflation soon, I ⁠am prepared to act,” Cook said. “I am fully committed to reaching our inflation target, and this commitment is unwavering.”

Cook compared the current situation, with inflation well above ​the Fed’s ​2% target and the job market seemingly ​stable, with the outlook a ‌year ago when there were risks around the job market and inflation slowing.

“I see a notable shift in the balance of risks relative to a year or so ago, with inflation risks now outweighing employment risks,” she said.

Fed officials have been debating the prospect of a rate hike that investors anticipate could ‌come as soon as this fall, with ​Fed Governor Christopher Waller also this week saying ​the U.S. central bank may ​need to act unless there is consistent evidence of slower ‌inflation in coming months.

The outlook for ​rates became cloudier this ​week after the U.S. government released two generally benign inflation reports.

Fed Chairman Kevin Warsh has avoided commenting on his interest rate views, even ​as the outlook among ‌his colleagues has been shifting toward the need for tighter monetary policy.

The ​Fed will hold its next policy meeting on July 28-29.

(Reporting ​by Howard Schneider; Editing by Paul Simao)