Federal Reserve's new voting member, Powell: If the economy remains stable, interest rate cuts may continue later this year

DeepFlowTech · 2026-01-05T02:18:44+00:00

Philadelphia Federal Reserve Chair Anna Paulson stated that if the economic outlook remains favorable, there could be a moderate rate cut later in 2026. She expects inflation to ease and economic growth to be around 2%. Although the labor market is under pressure, it has not collapsed, and unemployment claims have stabilized.

DeepFlowTech

2026-01-05 02:18:44

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Deep Tide TechFlow News, on January 5th, according to Jinshi Data, Anna Paulson, President of the Federal Reserve Bank of Philadelphia and a newly appointed FOMC voting member in 2026, stated that if the economic outlook remains benign, it may be appropriate to implement moderate additional rate cuts later in 2026.

“I expect inflation to ease and the labor market to stabilize, with economic growth around 2% this year,” Paulson said in her prepared remarks at the American Economic Association annual meeting held in Philadelphia last Saturday. “If all these conditions occur, then it is likely appropriate to make some moderate further adjustments to the federal funds rate later this year.”

The Philadelphia Fed chief indicated that risks to the labor market remain high, with the slowdown in labor demand outpacing the supply contraction caused by the Trump administration’s immigration policies.

However, she pointed out that unemployment insurance claims seem to have stabilized. “Although the labor market is under noticeable pressure, it has not collapsed,” she said.

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