Federal Reserve's new voting member, Powell: Rate cuts can wait; employment is a greater concern than inflation

Odaily Planet Daily News: Paulson hints that she agrees with the mainstream view that there is no need to rush into another rate cut. Paulson will become a voting member of the Federal Reserve this year and supports the Fed’s decision to cut rates in the past three meetings.

She stated that she expects meaningful progress in inflation returning to the Fed’s 2% target by the end of this year, but she is satisfied with maintaining stable rates at the upcoming Fed meeting scheduled for January 27 to 28. She believes that interest rates are still sufficiently high, slightly above the neutral level that neither stimulates nor restrains growth, and she considers maintaining this level appropriate at the moment to help achieve the goal of lowering inflation.

At the same time, Paulson indicated that she might lean towards a moderate rate cut later this year, provided either inflation data confirms her expectations—that price pressures are easing—or there is evidence showing that the employment market is unexpectedly worsening. (Jin10)