Fed's Newest Voting Member: If Economy Holds Steady, Further Rate Cuts Possible Later This Year

BlockBeats News, January 5, 2026 - Anna Paulson, the newly appointed Federal Reserve voting member and President of the Philadelphia Fed, stated that if the economic outlook remains benign, a moderately further rate cut later in 2026 may be appropriate. "I expect inflation to moderate, the labor market to stabilize, and this year's economic growth rate to be around 2%. If all of these materialize, then some moderate additional adjustment to the federal funds rate later this year is likely to be appropriate."

Anna Paulson also noted that there is still significant risk in the labor market, as the deceleration in labor demand has outpaced the supply contraction resulting from the Trump administration's immigration policies. "While the labor market is clearly under pressure, it has not collapsed."