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Philadelphia Fed's Anna Paulson says 'modest' rate moves likely ahead to tame inflation
Paulson said underlying inflation is still running about 2.5% to 3%, and traders now see a 64% chance of another hike in October.
- On Thursday, Philadelphia Federal Reserve President Anna Paulson said she and her colleagues may need to raise interest rates further to bring inflation back to the central bank's 2% target.
- Paulson supported the central bank's decision last week to raise the benchmark rate to a range of 3.75%-4%, noting 'the balance of risks had shifted' as underlying inflation showed little progress.
- Underlying inflation is running in a range of about 2.5% to 3%, well above the 2% target, and Paulson noted, 'The best I can say about underlying inflation this year is that it hasn't gotten worse.'
- New York Fed President John Williams said earlier Thursday it's 'reasonable' to expect another hike before year-end, while traders are pricing in a 64% chance the FOMC hikes again in October.
- Fed funds futures contracts imply a rate of 4.8% by the end of 2027, suggesting four quarter-point increases ahead, while Paulson described a 'resilient economy' showing momentum despite tariffs and Middle East conflict.
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11 Articles
11 Articles
Fed’s Paulson Is the Latest to Predict More Rate Increases Ahead
·New York, United States
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Coverage Details
Total News Sources11
Leaning Left1Leaning Right1Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 17%
C 67%
R 16%
Factuality
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