Fed's Paulson (2026 voter) says current period is a complicated time for monetary policy, via CNBC Interview

Inflation Inflation is too high and she wants to reduce it. It is right to look through supply shocks. Need to keep an eye on second round effects. Policy Need mildly restrictive monetary policy and Fed likely has that now. Policy feels mildly restrictive, has an open mind where rate policy is going. Was not a close call to keep rates steady at FOMC. If we dont see progress to 2% inflation, need to be open to calibrating policy, could be higher rates, could be same rates for longer. Need an open mind on what is appropriate. Forward guidance Cannot provide forward guidance as she is weighing evidence with everyone else. Uncertainty of current environment makes it hard to give guidance. Forward guidance more appropriate when rates are near zero. It is great to take a fresh look at how the Fed does its work. Is open minded about fed reviews (task forces). Sometimes dots are helpful, sometimes they are not.