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Fed’s Paulson: Cautiously optimistic on inflation moving back to target

Fed’s Paulson: Cautiously optimistic on inflation moving back to target

101 finance101 finance2026/01/14 15:12
By:101 finance

President of the Federal Reserve (Fed) Bank of Philadelphia Anna Paulson said on Wednesday that she sees further rate cuts later this year if the forecast meets their expectations. In a speech at the Chamber of Commerce for Greater Philadelphia, Paulson added that inflation should be around 2% by year-end.

Key takeaways

Sees further rate cuts later this year if forecast met.

Inflation should be around 2% run rate by year end.

Monetary policy ISA little restrictive right now.

cautiously optimistic on inflation moving back to target.

Baseline economic outlook is pretty benign.

In 2026, I'm seeking greater clarity on what's driving the job market.

The US is likely to grow around 2% this year.

In 2026, expects inflation to moderate, job market to stabilise.

Not everyone is doing great in the US economy right now.

The job market is bending but not breaking right now.”

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