Philadelphia Fed’s Paulson says fed funds rate still ‘a little restrictive’

In a speech titled “Economic Trends and Opportunities for Philadelphia”, Paulson says: “I view the current level of the federal funds rate as still a little restrictive. So, the combination of past and current monetary policy restrictiveness will help to bring inflation all the way to two. We’ve seen progress on underlying inflation that is likely to continue and there is no evidence to date that tariff-induced price increases are leading to broader inflation. In addition, long-term inflation expectations are anchored at levels consistent with a gradual return to 2 percent inflation. These trends, especially given labor market developments, argue against tighter monetary policy.” TheFly.com notes that Paulson is a voting FOMC member in 2026.