Paulson, president of the Federal Reserve Bank of Philadelphia, said that if inflation cools, the Federal Reserve might cut interest rates further, but she also hinted that any additional rate cuts might not come immediately. In a speech delivered in Philadelphia on Saturday, Paulson noted that she is cautiously optimistic that inflationary pressures may ease in the coming months.This year marks her first term as a voting member of the Federal Reserve’s Policy Committee. She noted that the current target range of 3.5% to 3.75% remains “slightly tight,” meaning the rate is sufficient to curb inflation, which could pave the way for further rate cuts in the future.According to the published speech transcript, Paulson said, “If inflation eases and the economy stays on track, a modest adjustment to the federal funds rate later this year may be appropriate.”Paulsson noted that “signals regarding the health of the labor market are mixed,” suggesting that, overall, the market is under pressure but has not collapsed, and that she is awaiting further data to clarify the situation. These remarks imply that she may wish to see more evidence regarding the economy’s evolution over the coming months before supporting further policy adjustments.