Federal Reserve New Federal Open Market Committee member Paulson: Interest rate cuts can wait; employment is a greater concern than inflation
Svmuu News: Paulson hinted that she agrees with the mainstream view that there is no need to rush into another rate cut. Paulson, who will become a voting member of the Federal Open Market Committee this year, supported the decision to cut rates at the past three meetings Federal Reserve.She stated that she expects inflation to make meaningful progress toward the central bank’s 2% target by the end of the year, but she is satisfied with keeping rates steady at the upcoming Federal Reserve meeting on January 27–28.She believes interest rates remain sufficiently high—slightly above the neutral level that neither stimulates nor restrains growth—and stated that maintaining this level is appropriate at present and will help achieve the goal of lowering inflation.At the same time, Paulson indicated that she might be inclined to cut rates modestly later this year, provided that either inflation data confirms her expectations—that price pressures are easing—or evidence emerges that labor market conditions are unexpectedly deteriorating. (Jin Shi)
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