Fed official Paulson says gradual policy tightening seems appropriate for now
【Fed official Paulson says gradual policy tightening seems appropriate for now】According to CoinChain News, on November 11, Philadelphia Fed President Anna Paulson said she favored gradual interest-rate increases, adding that wage pressures were limited and inflation expectations remained consistent with the central bank’s 2% target. Speaking Tuesday at an event organized by the Philadelphia Fed, Paulson said, “For now, further gradual policy tightening seems appropriate.” She added, “If inflation expectations rise, wage pressures intensify or underlying inflation picks up, I would want to act more quickly. But so far, I haven’t seen that.” Last month, Fed officials left the benchmark interest rate unchanged at 3.75% to 4%, after raising it by 0.25 percentage points in September. Since the October meeting, several policymakers have said that further tightening is needed to bring inflation within the 2% target range.
Paulson said, “Not taking action at one meeting is a matter of pace, not direction. There may be more work to do. But I lean toward tightening policy gradually when conditions allow.” She added that slowing the pace would give households, businesses and the financial sector time to adjust, while also giving policymakers time to assess the data. She said, “A gradual approach works best when the direction of policy is clear. If markets expect further tightening, taking a gradual approach won’t leave us behind where we need to be.” (Sina Finance)
【Fed official Paulson says gradual policy tightening seems appropriate for now】According to CoinChain News, on November 11, Philadelphia Fed President Anna Paulson said she favored gradual interest-rate increases, adding that wage pressures were limited and inflation expectations remained consistent with the central bank’s 2% target. Speaking Tuesday at an event organized by the Philadelphia Fed, Paulson said, “For now, further gradual policy tightening seems appropriate.” She added, “If inflation expectations rise, wage pressures intensify or underlying inflation picks up, I would want to act more quickly. But so far, I haven’t seen that.” Last month, Fed officials left the benchmark interest rate unchanged at 3.75% to 4%, after raising it by 0.25 percentage points in September. Since the October meeting, several policymakers have said that further tightening is needed to bring inflation within the 2% target range.
Paulson said, “Not taking action at one meeting is a matter of pace, not direction. There may be more work to do. But I lean toward tightening policy gradually when conditions allow.” She added that slowing the pace would give households, businesses and the financial sector time to adjust, while also giving policymakers time to assess the data. She said, “A gradual approach works best when the direction of policy is clear. If markets expect further tightening, taking a gradual approach won’t leave us behind where we need to be.” (Sina Finance)