Fed's Paulson Backs Further Tightening as Inflation Remains Stubborn

Key Facts

1Philadelphia Fed President Anna Paulson, a voting FOMC member, stated that inflation remains stubbornly elevated.

2Paulson backed modest further tightening of monetary policy if the economy develops as expected.

Philadelphia Fed President Anna Paulson, a voting FOMC member, stated that inflation remains stubbornly elevated. ActionForex reported that Paulson backed modest further tightening of monetary policy if the economy develops as expected, emphasizing that returning inflation to the 2% target is a top priority.

The hawkish stance reinforces the 'higher for longer' narrative, though Paulson noted that policy must still weigh risks to the labor market. This outlook aligns with broader inflationary pressures, as seen in recent data from September 18, 2026, where the German Producer Price Index rose 4.6% year-on-year, exceeding the forecasted 4.1%.