Overview

• Anna Paulson said increasing threats to employment argue for additional interest rate cuts.
• She endorsed easing "along the lines" of the Fed's September projections after a 25-basis-point move to 4.00%–4.25%.
• She warned against a go-fast cutting strategy given uncertainty about the economy's neutral rate.
• She said tariffs will lift prices temporarily and noted policy remains modestly restrictive with long-term expectations stable.
• She projected 2026 growth near potential with inflation rising before subsiding, as officials continue to debate the pace of easing.