Fed Officials Signal Cautious Approach to Rate Cuts Amid Economic Uncertainty

TL;DR Summary
Federal Reserve Bank of Philadelphia President Anna Paulson indicated that modest interest rate cuts could be appropriate later in 2026 if the economy remains benign, with inflation expected to moderate and the labor market stabilizing, though risks remain elevated. She noted current policy is slightly restrictive, helping to bring inflation to the 2% target, and highlighted uncertainties due to tariffs and recent economic data. Policymakers are divided on rate adjustments, with some favoring holding rates steady until more data is available.
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- The Fed's 'First Hawk of the New Year': Interest rate cuts depend on economic prospects, likely postponed until the second half of the year! 富途牛牛
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