Chicago Fed Pres. Anna Paulson is speaking for the 1st time as Fed Pres. on policy/the economy. She says:
Favors gradual path of rate cuts over this year into next
Rising risks to job market should be main focus of monetary policy
Job market currently near full employment but trend going wrong way
Gradual rate cuts should keep job market ‘close’ to full employment
Unclear what neutral rate is, argues for caution in rate cut pace
September Fed rate cut size ‘made sense’
Expects tariffs to push up inflation but won’t cause persistent increase
Economy currently doing well amid elevated inflation pressures
Tariff inflation impact smaller than expected so far
Long-run inflation expectations ‘remarkably stable’
2026 should see near potential growth, eventually inflation cooling.
In sum, Paulson’s comments convey a measured and risk-aware dovish stance — one favoring gradual rate cuts extending through this year and into next, as the Fed seeks to maintain economic momentum and avoid a sharper slowdown amid cooling inflation pressures.
