Fed’s Paulson Favors Two More 2025 Cuts, Looking Through Tariffs

Federal Reserve Bank of Philadelphia President Anna Paulson signaled she favors two more quarter-point interest-rate cuts this year, as monetary policy should look through the impact of tariffs in consumer price increases.

“For me, the bottom line is that I simply don’t see the type of conditions, especially in the labor market, which seem likely to turn tariff-induced price increases into sustained inflation,” Paulson said Monday in prepared remarks at the National Association for Business Economics’ annual conference in Philadelphia.

WATCH: Philadelphia Federal Reserve Bank President Anna Paulson says monetary policy is “modestly restrictive” and officials should look through the impact of tariffs in consumer price increases.

Source: Bloomberg

Policymakers’ decision to cut interest rates by a quarter-percentage point last month “made sense,” Paulson said. With monetary ...