Fed's Paulson Signals Further Gradual Interest Rate Hikes to Curb Inflation
Anna Paulson said gradual tightening can slow inflation while giving the economy time to adjust, as October consumer prices rose 0.4%, officials said.
- On Tuesday, Philadelphia President Anna Paulson stated the central bank must implement additional interest rate increases to combat persistent inflation, emphasizing restrictive policy is necessary to return inflation to 2%.
- October consumer prices rose 0.4%, with inflation driven by Trump Administration policies, energy prices, and AI investment, as economists observed these pressures spilling over into the broader economy.
- Paulson delivered remarks at the 81st Annual Field Meeting Capstone in Conshohocken, Pennsylvania, noting that "further gradual tightening seems appropriate" with the federal funds rate currently standing between 3.75% and 4%.
- Futures markets are pricing in strong odds of a quarter percentage point interest rate increase at the December Federal Open Market Committee meeting, while traders also expect rate hikes at the late January gathering.
- Paulson said "the exact path will depend on how conditions evolve," noting she would consider faster action if wage pressures build or underlying inflation moves higher.
12 Articles
12 Articles
The president of the Philadelphia Federal Reserve (Fed) district, Anna Paulson, said she is in favour of a gradual rate of interest rate rise, adding that wage pressures have been limited and inflation expectations remain consistent with the 2% target of the US central bank. Exclusive material for subscribers. To have full access, access the link of the subject and register.
The Economic Times
Times of IndiaFed's Paulson signals further gradual interest rate hikes to curb inflation
Federal Reserve Bank of Philadelphia President Anna Paulson signals support for further interest rate hikes to curb persistent US inflation, which remains above the Feds 2% target. Strong October CPI data, resilient employment and rising price pressures reinforce expectations of monetary tightening, with markets anticipating additional increases in December.
Fed's Paulson calls for gradual rate hikes amid ongoing high inflation
Feds Paulson Advocates Gradual Rate Hikes to Combat Persistent Inflation
Quick Summary: Feds Paulson Advocates Gradual Rate Hikes to Combat Persistent Inflation Fed’s Paulson supports gradual rate hikes — her stance aims to combat persistent inflation. October CPI rose 0.4%, exceeding expectations — this has increased pressure for a December rate hike. Market pricing now anticipates a December rate increase — discussions suggest hikes could […]
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