PRIMER - Today’s Fedspeak includes Paulson

13:30BST/08:30EDT: Fed’s Paulson (voter, neutral) will give an interview to CNBC. Speaking in May (before both the June and July confabs), Paulson said monetary policy was appropriately restrictive, and was helping to contain inflation pressures from tariffs and the Middle East conflict. She said rate cuts would only become appropriate following sustained inflation progress, and described it as “healthy” that markets were pricing in scenarios of an extended hold or further tightening. Paulson also added that risks to the inflation mandate have increased, with the outcome heavily dependent on the duration of the Middle East conflict. Since Paulson spoke in May, the Fed has held rates at 3.50-3.75% at both its June and July meetings, with three dissenters (Logan, Hammack and Kashkari) calling for a 25bps hike at July’s meeting. In June, Chair Warsh significantly shortened the FOMC policy statement, and the Fed’s easing bias was removed and forward guidance was removed. Many analysts now argue that this leaves each meeting effectively live.