Fed's Paulson (2026 voter) says inflation pressures are weighing on the economy and firms are having a hard time planning for future
- Monetary policy is appropriately positioned at mildly restrictive levels.
- US on track to continue modest growth.
- Consumers spending, but at a slower pace.
- Households and firms are cautious about outlook amid uncertainty.
- Base case is that the job market remains stable.
- Inflation is too high due to multiple forces.
- Current stance of policy appropriate.
- Current Fed policy helping to temper higher inflation.
- Pace of economic activity not adding materially to inflation pressures.
- Talking long term inflation expectations, Paulson says they are in a good place.
- Holding rates steady will give the Fed space to weigh incoming data.
- 'Healthy' for markets to shift to tighter monpol outlook.
- Doesn't see structural changes in inflation, instead it's been series of shocks.
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