Express
New Fed voting member Paulson: Rate cuts can wait, employment more concerning than inflation
Summary: In a recent statement, Paulson hinted at her agreement with the mainstream view that there is no rush to cut rates again. Paulson, who will become a voting member on interest rates this year, has supported the Fed's decisions to cut rates in the past three meetings. She stated that she expects meaningful progress towards ...
In a recent statement, Paulson hinted at her agreement with the mainstream view that there is no rush to cut rates again. Paulson, who will become a voting member on interest rates this year, has supported the Fed's decisions to cut rates in the past three meetings.
She stated that she expects meaningful progress towards the central bank's 2% inflation target by the end of this year, but she is satisfied with maintaining rate stability at the Fed's upcoming meeting on January 27-28. She believes that rates are still high enough, slightly above the neutral level that neither stimulates nor restrains growth, and maintaining this level currently is appropriate to help achieve the goal of reducing inflation.
At the same time, Paulson indicated that she may lean towards a moderate rate cut later this year, either if inflation data confirms her expectations - that price pressures are easing, or if there is evidence that the labor market conditions are unexpectedly deteriorating.
Tags:
Link: New Fed voting member Paulson: Rate cuts can wait, employment more concerning than inflation [Copy]
