Fed's New Voting Member Paulson: Rate Cuts Can Wait, Employment More Worrying Than Inflation

Odaily Tin tức Paulson hinted that she agrees with the mainstream view that there is no need to rush into another rate cut. Paulson will become a voting member on interest rates this year, and she supports the Fed's decision to cut rates at its past three meetings.

She stated that she expects meaningful progress towards the central bank's 2% target for inflation by the end of this year, but she is comfortable with keeping rates steady at the Fed's upcoming meeting on January 27-28. She believes rates are still sufficiently high, slightly above the neutral level that neither stimulates nor restrains growth, and said maintaining this level for now is appropriate to help complete the task of reducing inflation.

At the same time, Paulson said she might lean towards a moderate rate cut later this year, either if inflation data confirms her expectations—that price pressures are easing—or if evidence emerges that labor market conditions are unexpectedly deteriorating. (Jin10)