Paulson: Focusing on employment risks, monetary policy remains restrictive
2025-12-12 13:12:50
Paulson, president of the Philadelphia Fed, said she was most concerned about the state of the labour market at the moment and believed the current stance of monetary policy should help bring inflation back to its 2 per cent target. She was slightly more concerned about labour market weakness than she was about upside risks to inflation, noting that inflation was likely to fall gradually next year as the impact of tariffs faded. Paulson stressed that monetary policy remained somewhat restrictive and that the cumulative effect of past tightening would help bring inflation back to target.
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