Fed's Paulson (2026 voter) says inflation pressures are weighing on the economy and firms are having a hard time planning for future

Monetary policy is appropriately positioned at mildly restrictive levels. US on track to continue modest growth. Consumers spending, but at a slower pace. Households and firms are cautious about outlook amid uncertainty. Base case is that the job market remains stable. Inflation is too high due to multiple forces. Current stance of policy appropriate. Current Fed policy helping to temper higher inflation. Pace of economic activity not adding materially to inflation pressures. Talking long term inflation expectations, Paulson says they are in a good place. Holding rates steady will give the Fed space to weigh incoming data. 'Healthy' for markets to shift to tighter monpol outlook. Doesn't see structural changes in inflation, instead it's been series of shocks.