Chicago Fed Pres. Anna Paulson is speaking for the 1st time as Fed Pres. on policy/the economy. She says:
-
Favors gradual path of rate cuts over this year into next
-
Rising risks to job market should be main focus of monetary policy
-
Job market currently near full employment but trend going wrong way
-
Gradual rate cuts should keep job market ‘close’ to full employment
-
Unclear what neutral rate is, argues for caution in rate cut pace
-
September Fed rate cut size ‘made sense’
-
Expects tariffs to push up inflation but won’t cause persistent increase
-
Economy currently doing well amid elevated inflation pressures
-
Tariff inflation impact smaller than expected so far
-
Long-run inflation expectations ‘remarkably stable’
-
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.
Source_link