Fed's Paulson (2026 voter) says Fed will move more aggressively if inflation landscape worsens, adds further gradual rate hikes are appropriate given high inflation and exact path of rate policy depends on how the economy evolves
ORIGINAL · NewsquawkFed's Paulson (2026 voter) says Fed will move more aggressively if inflation landscape worsens, adds further gradual rate hikes are appropriate given high inflation and exact path of rate policy depends on how the economy evolvesRead originalHide original
Says: Monetary policy needs to be somewhat restrictive. Gradual rate hikes have also given Fed officials space to gauge the impact and have given the economy time to adjust. CPI data showed inflation remains a problem. Supported Fed's recent rate decisions. Underlying inflation is stuck between 2.5% and 3%. Fed has more work to do to lower inflation. The economy is stronger than expected and job market robust and stable. AI and energy impact on inflation are hard to gauge. Risks to the inflation outlook are high.
Paulson favors gradual tightening but says the path depends on economic developments and could become more aggressive if inflation pressures worsen.
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Says: Monetary policy needs to be somewhat restrictive. Gradual rate hikes have also given Fed officials space to gauge the impact and have given the economy time to adjust. CPI data showed inflation remains a problem. Supported Fed's recent rate decisions. Underlying inflation is stuck between 2.5% and 3%. Fed has more work to do to lower inflation. The economy is stronger than expected and job market robust and stable. AI and energy impact on inflation are hard to gauge. Risks to the inflation outlook are high.
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