Fed’s Paulson Repeats She Sees Modest Rate Cuts Later in 2026

Federal Reserve Bank of Philadelphia President Anna Paulson repeated she sees room for further interest-rate cuts later this year after the latest inflation data confirmed her cautious optimism.

“I am feeling cautiously optimistic on inflation, and I see a decent chance that we will end the year with inflation that is close to 2% on a run-rate basis,” Paulson said Wednesday in remarks prepared for an event with the Chamber of Commerce for Greater Philadelphia.

Federal Reserve Bank of Philadelphia President Anna Paulson

Photographer: David Paul Morris/Bloomberg

“I see inflation moderating, the labor market stabilizing and growth coming in around 2% this year. If all of that happens, then some modest ...