Federal Reserve Bank of Philadelphia President Anna Paulson said on Saturday that further central bank rate cuts could be some way off while officials take stock of the economy's performance.
PHILADELPHIA — Federal Reserve Bank of Philadelphia President Anna Paulson said on Saturday that further central bank rate cuts could be some way off while officials take stock of the economy's performance after an active campaign of easing last year.
"I see inflation moderating, the labor market stabilizing and growth coming in around 2% this year," Paulson said in the text of a speech to be delivered before the 2026 Allied Social Science Associations Annual Meeting in Philadelphia. "If all of that happens, then some modest further adjustments to the funds rate would likely be appropriate later in the year," the official said.Paulson also said, "I view the current level of the funds rate as still a little restrictive," adding it is still working to lower inflation pressures.Paulson will have a vote this year on the interest-rate setting Federal Open Market Committee. Last year, the committee trimmed its interest rate target by three-quarters of a percentage point in three separate 25 basis point moves, leaving the central bank's interest rate target at between 3.5% and 3.75% at the December policy meeting.Officials cut rates amid a tricky balancing act. They sought to keep policy creating enough headwinds to lower inflation, with rates also low enough to help buoy a weakening job market. As officials trimmed interest rates, they also faced considerable pressure from President Donald Trump for more aggressive cuts, while a number of Fed officials did not want to ease at all with inflation still well above the 2% target.At the December meeting, Fed Chair Jerome Powell provided little guidance about the timing of future rate cuts, although Fed forecasts show some sort of further easing for this year.In her remarks, Paulson said she had "cautious optimism on inflation" and a desire for "greater clarity on what is pushing growth up and employment down.""I see a decent chance that we will end the year with inflation that is close to 2% on a run-rate basis" as tariff-related price adjustments are completed, the official said.On the hiring front, "While the labor market is clearly bending, it is not breaking," Paulson said. She added, "I see the broad deceleration in the labor market as stemming from both supply and demand factors" and the hiring situation merits close attention as the year moves forward.
Traffic Weather Sports Classifieds Cars Jobs Homes Television Radio Salt Lake Utah Local Finance Business Economy
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pound Sterling gathers strength above 1.3450 on Fed rate cut bets, BoE's gradual policy pathThe GBP/USD pair gathers strength to around 1.3480 during the early Asian session on Friday. Expectations of the US Federal Reserve (Fed) rate cuts this year weigh on the US Dollar (USD) against the Pound Sterling (GBP). Philadelphia Fed President Anna Paulson is set to speak later on the weekend.
Read more »
USD/CAD falls to near 1.3700 due to Fed rate cut bets, higher Oil pricesUSD/CAD pares recent gains from the previous session, trading around 1.3710 during the Asian hours on Friday. The pair depreciates as the US Dollar (USD) loses ground over expectations of two more Federal Reserve rate cuts in 2026.
Read more »
Silver Price Forecast: XAG/USD climbs above $74.00 amid Fed cut bets, safe-haven demandSilver price (XAG/USD) rises to near $74.10 per troy ounce during the early European hours on Friday. The price of the grey metal surged 148% in 2025, breaking key levels amid its designation as a critical US mineral, tight supply, low stockpiles, and rising industrial and investment demand.
Read more »
This popular grass-fed ground beef brand has been recalled in six statesForward Farms products containing dangerous E. coli bacteria could be lurking in your freezer right now, according to a USDA announcement.
Read more »
Avalanche places goaltender Mackenzie Blackwood on injured reserveThe Colorado Avalanche has been one of the healthiest NHL teams this season, but it’s run into a mini-injury crisis.
Read more »
Stephen King's The Revelations of 'Becka Paulson Adaptation CancelledStephen King looking to his left at a book signing
Read more »