Fed’s Paulson Says Additional Rate Cuts Possible Later This Year

Federal Reserve Bank of Philadelphia President Anna Paulson said modest additional interest-rate cuts could be appropriate later in 2026, but conditioned that outcome on a benign outlook for the economy.

“I see inflation moderating, the labor market stabilizing and growth coming in around 2% this year,” Paulson said in prepared remarks she’s scheduled to deliver Saturday at the American Economic Association’s annual meeting in Philadelphia. “If all of that happens, then some modest further adjustments to the funds rate would likely be appropriate later in the year.”