Fed's Paulson signals another rate cut could take a while
KSL.com••business
Key Points:
- Philadelphia Fed President Anna Paulson indicated that further Federal Reserve rate cuts may be delayed as officials assess the economy following significant easing last year.
- Paulson expects inflation to moderate, the labor market to stabilize, and economic growth to reach around 2% in 2024, suggesting modest rate adjustments might be appropriate later in the year.
- She described the current federal funds rate as still somewhat restrictive, continuing to help reduce inflation pressures.
- Paulson expressed cautious optimism about inflation nearing the 2% target by year-end and emphasized the need for clarity on factors affecting growth and employment.
- While acknowledging a slowdown in the labor market, she noted it is not collapsing, attributing the deceleration to both supply and demand influences
