Chicago Fed Pres. Anna Paulson is speaking for the 1st time as Fed Pres. on policy/the economy. She says:
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Favors gradual path of rate cuts over this year into next
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Rising risks to job market should be main focus of monetary policy
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Job market currently near full employment but trend going wrong way
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Gradual rate cuts should keep job market ‘close’ to full employment
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Unclear what neutral rate is, argues for caution in rate cut pace
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September Fed rate cut size ‘made sense’
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Expects tariffs to push up inflation but won’t cause persistent increase
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Economy currently doing well amid elevated inflation pressures
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Tariff inflation impact smaller than expected so far
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Long-run inflation expectations ‘remarkably stable’
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2026 should see near potential growth, eventually inflation cooling.
In sum, Paulson’s comments convey a measured and risk-aware dovish stance — one favoring gradual rate cuts extending through this year and into next, as the Fed seeks to maintain economic momentum and avoid a sharper slowdown amid cooling inflation pressures.
This article was written by Greg Michalowski at investinglive.com.
