Philadelphia Federal Reserve President Anna Paulson said that “modest” interest‑rate moves are likely to come as the central bank works to tame inflation, adding that she and her colleagues may need to raise rates further to bring inflation back to the Fed’s 2 percent target.
Paulson, a member of the Federal Open Market Committee, made the comments in a recent speech, indicating that the policy outlook remains focused on incremental adjustments rather than large, abrupt changes.
She emphasized that the Fed’s approach will be measured, with any forthcoming hikes expected to be modest in size, reflecting a cautious stance amid still‑elevated price pressures.
At the same time, Paulson warned that if inflation does not move closer to the target, the committee could consider additional rate increases to ensure price stability.
The remarks come as the Federal Reserve continues to monitor inflation data that remains above its long‑standing 2 percent goal, prompting ongoing debate among policymakers about the pace and magnitude of future monetary tightening.
<small>Source: CNBC — read the original story there.</small>