Philadelphia Fed President Suggests Potential Rate Cuts if Inflation Eases

According to BlockBeats, Philadelphia Federal Reserve President Paulson indicated that the Federal Reserve might consider further interest rate cuts if inflation shows signs of easing. However, she cautioned that any additional rate reductions may not be immediate. In a speech delivered in Philadelphia, Paulson expressed cautious optimism about the potential for reduced price pressures in the coming months. This year marks her first as a voting member of the Federal Reserve's policy committee. She noted that the current target range of 3.5% to 3.75% remains 'slightly restrictive,' suggesting that this level is sufficient to curb inflation, potentially paving the way for future rate cuts. In her prepared remarks, Paulson stated, 'If inflation eases and the economy stays on its current path, a modest adjustment to the federal funds rate later this year may be appropriate.' She also commented on the mixed signals regarding the health of the job market, indicating that while the market is under pressure, it has not collapsed. Paulson is awaiting more data to clarify the situation, implying that she seeks further evidence of economic developments in the coming months before supporting additional policy adjustments.