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Fed's Paulson: Supports Two More Interest Rate Cuts This Year, Policy Should Ignore Short-Term Tariff Impact
Summary: In a recent statement, Anna Paulson, a 2026 FOMC voter and President of the Philadelphia Fed, expressed support for two more 25 basis point interest rate cuts this year. She believes monetary policy should ignore the impact of tariffs on consumer price increases. Paulson noted that the Fed's decision to cut rates by 25 basis ...
In a recent statement, Anna Paulson, a 2026 FOMC voter and President of the Philadelphia Fed, expressed support for two more 25 basis point interest rate cuts this year. She believes monetary policy should ignore the impact of tariffs on consumer price increases. Paulson noted that the Fed's decision to cut rates by 25 basis points last month was 'appropriate.' She suggests that with monetary policy at a moderately restrictive level, easing should proceed in line with the latest 'Economic Projections Summary' from the Fed. The median forecast in the summary supports two more 25 basis point rate cuts before the end of the year. The Fed officials will also hold two more meetings in 2025, including one scheduled for October 28-29 in Washington. This speech marks Paulson's first public comments on the economic situation since taking office as President of the Philadelphia Fed in July. She expects the economy to continue expanding at an above-trend pace in the third quarter after exceeding expectations in the second quarter.
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Link: Fed's Paulson: Supports Two More Interest Rate Cuts This Year, Policy Should Ignore Short-Term Tariff Impact [Copy]
