Odaily Planet Daily reports that Anna Paulson, a 2026 FOMC voter and president of the Philadelphia Fed, has expressed support for two more 25 basis point rate cuts this year, arguing that monetary policy should ignore the impact of tariffs on rising consumer prices. The policymaker noted that the Fed's decision to cut by 25 basis points last month was "reasonable." She believes that with monetary policy remaining moderately restrictive, easing should proceed in the direction suggested by the Fed's latest Summary of Economic Projections. The median forecast supports two more 25 basis point rate cuts before the end of the year. Federal Reserve officials will hold two more meetings in 2025, including one scheduled for October 28-29 in Washington. This speech marks Paulson's first public comment on the economic situation since assuming the Philadelphia Fed presidency in July. She expects the economy to continue expanding at an above-trend pace in the third quarter after exceeding expectations in the second quarter. (Jinshi)
