New Fed voting member: If the economy remains stable, there may be room for further rate cuts later this year

Anna Paulson, a new Federal Reserve voting member and President of the Philadelphia Fed, stated that if the economic outlook remains benign, a moderate additional rate cut later in 2026 might be appropriate.
I expect inflation to ease and the labor market to stabilize. This year’s economic growth rate is around 2%. If all these conditions occur, then it is very likely that some moderate further adjustments to the federal funds rate will be appropriate later this year.
Anna Paulson also mentioned that the risks in the labor market remain high, with the slowdown in labor demand outpacing the supply contraction caused by the Trump administration’s immigration crackdown. Although the labor market is under significant pressure, it has not collapsed.