When will the Federal Reserve cut interest rates in 2026, according to Anna Paulson?

Philadelphia Fed President Anna Paulson indicated that further rate cuts might be delayed and could potentially occur later in 2026 if economic conditions are favorable.

What is Anna Paulson's economic outlook for 2026?

Anna Paulson anticipates inflation will moderate, the labor market will stabilize, and economic growth will be around 2% in 2026.

What was the Federal Reserve's interest rate action in 2025?

In 2025, the Federal Reserve trimmed its interest rate target three times by a total of three-quarters of a percentage point, ending the year with a target range of 3.5% to 3.75%.

Home / Business and Economy / Fed Rate Cuts Delayed: Paulson Cites Economic Watch

Fed Rate Cuts Delayed: Paulson Cites Economic Watch

4 Jan

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Summary

Further rate cuts may be delayed as the Fed assesses economic performance.
Philadelphia Fed President Anna Paulson expects inflation to moderate.
Labor market is stabilizing, with growth projected around 2%.

Fed Rate Cuts Delayed: Paulson Cites Economic Watch

Philadelphia Fed President Anna Paulson stated on Saturday that further interest rate cuts from the Federal Reserve could be some way off. Officials are pausing to evaluate the economy's performance following an active rate-cutting campaign conducted last year.

Paulson expressed cautious optimism, projecting that inflation will moderate and the labor market will stabilize. She anticipates economic growth to be around 2% for 2026. If these conditions materialize, she believes modest further adjustments to the federal funds rate might be appropriate later in the year. She noted that the current interest rate level remains somewhat restrictive.