Federal Reserve Bank of Philadelphia President Anna Paulson suggests that further interest rate cuts may not be imminent. She believes that the current rate level, between 3.5% and 3.75%, is still slightly restrictive and is helping to bring down inflation pressures. Paulson expects inflation to moderate, the job market to stabilize, and growth to reach around 2% this year. If these trends hold, she thinks modest further cuts to the federal funds rate could be appropriate later in the year. Last year, the Federal Open Market Committee trimmed rates by three quarters of a percentage point, aiming to cool inflation without harming the job market. Paulson is cautiously optimistic about inflation and wants clearer signs on whats driving growth up while jobs slow. She sees a good chance of prices nearing 2% by year-end, once tariff effects fade. The labor market is showing signs of strain but is not yet breaking, so it will require close monitoring in the future. Checkout Solipillow.com

The Daily News Now! — Every city. Every story. AI-powered.

---

Hosted on Acast. See acast.com/privacy for more information.