Fed's Paulson warns more hikes possible as inflation fight hardens
Philadelphia Fed President Anna Paulson crossed the wires on Thursday, signaling that further rate hikes may be needed to lower inflation. She acknowledged that the rate hike in September helped to “move policy to better inflation-fighting posture.”
Philadelphia Fed President Anna Paulson warned on Thursday that additional interest rate hikes might be necessary to combat inflation. She noted that the September rate increase helped "move policy to a better inflation-fighting posture." Paulson, who took on her new role as Philadelphia Fed President in July 2025, started cautiously dovish but later emphasized her commitment to supporting any measures required to bring inflation back to the Fed's 2% target.
The recent September rate hike signaled that the central bank's stance has changed in favor of stricter monetary policy. Paulson highlighted that the inflation risk balance had shifted ahead of the September policy meeting, with underlying inflation remaining persistently high. While the US economy displayed resilience and showed signs of increased momentum, she made it clear that further action might be needed to address inflation concerns.
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