---
title: "Federal Reserve's Paulson hints at supporting two more rate cuts this year, does not believe tariffs cause persistent inflation"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/260931036.md"
description: "Philadelphia Federal Reserve Bank President Anna Paulson hinted that there may be two more interest rate cuts this year, each by 25 basis points, and believes that the impact of tariffs on consumer prices should not be overstated. She stated that the current economic conditions do not support persistent inflation caused by tariffs and believes that monetary policy should continue to ease to maintain a labor market close to full employment. Although some Federal Reserve officials are cautious about rate cuts, Paulson expects the economy to continue growing above trend"
datetime: "2025-10-13T18:00:35.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/260931036.md)
  - [en](https://longbridge.com/en/news/260931036.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/260931036.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/260931036.md) | [繁體中文](https://longbridge.com/zh-HK/news/260931036.md)


# Federal Reserve's Paulson hints at supporting two more rate cuts this year, does not believe tariffs cause persistent inflation

Anna Paulson, President of the Federal Reserve Bank of Philadelphia, hinted that she is inclined to lower interest rates twice more this year, by 25 basis points each time, arguing that monetary policy should downplay the impact of tariffs on rising consumer prices.

“For me, the key is that I really do not see the kind of situation—especially in the labor market—that would allow price increases caused by tariffs to evolve into persistent inflation,” Paulson said in prepared remarks at the National Association for Business Economics annual meeting held in Philadelphia on Monday.

Paulson stated that last month's decision by policymakers to lower rates by 25 basis points was “reasonable.” With monetary policy still slightly tight, she advocated for continuing to ease in line with the Federal Reserve's last Summary of Economic Projections.

The median expectation in the last Summary of Economic Projections was for two more rate cuts of 25 basis points each before the end of this year. Federal Reserve officials will also meet twice more in 2025, with one meeting scheduled for October 28-29 in Washington.

This speech marked Paulson's first public comments on the economy since she took office as President of the Philadelphia Fed in July.

She added, “If the economy evolves as I expect, the monetary policy adjustments we make this year and next will be sufficient to keep labor market conditions close to full employment levels.”

Although a slight majority of Federal Reserve policymakers are inclined to support the labor market by lowering rates at least two more times this year, some advocate for caution as inflation remains above their 2% target.

In her remarks, Paulson indicated that a certain increase in commodity prices is to be expected in the “coming quarters,” but she noted that long-term inflation expectations remain stable and there are no signs of “worrisome spillover effects.”

However, the recent rise in unemployment “indicates that the momentum in the labor market is skewed to the downside.”

The Philadelphia Fed leader stated that after better-than-expected performance in the second quarter, she expects the economy to continue growing above trend in the third quarter.

However, she pointed out that the foundation supporting growth is narrow, with consumption increasingly reliant on spending from high-income households. She added that this spending is somewhat dependent on a stock market boom driven by a few AI-related companies.

She said, “Some business contacts are wondering where future demand will come from. This is worth close attention.”

## Related News & Research

- [5 Simple ETFs to Buy With $1,000 and Hold for a Lifetime](https://longbridge.com/en/news/281345615.md)
- [Warren Buffett Admits He Sold Apple Too Early, Eyes Future Buying But Not Yet](https://longbridge.com/en/news/281336451.md)
- [BUZZ-Rosenblatt says finding partner for Snap's smart glasses unit tough](https://longbridge.com/en/news/281357569.md)
- [BUZZ-Street View: Nike's turnaround remains work in progress](https://longbridge.com/en/news/281331333.md)
- [GRAPHIC-Apple's 50-year journey from garage to tech titan](https://longbridge.com/en/news/281342951.md)