Philadelphia Fed President Anna Paulson’s remarks may clarify policy outlook amid shifting expectations from cuts to potential hikes in 2026.
Philadelphia Federal Reserve President Anna Paulson is set to deliver remarks at 2300 GMT, with markets closely watching for signals on monetary policy. Paulson, a voting FOMC member in 2026, previously supported holding rates steady at 3.50%-3.75% in April but had earlier suggested modest cuts could be appropriate later this year.
Market expectations for rate cuts at the start of 2026 have since reversed, with some traders now pricing in potential hikes due to persistent inflation and geopolitical pressures. Recent comments from Fed officials have reflected growing caution as inflation risks remain elevated.
Separately, the People’s Bank of China is expected to keep its Loan Prime Rate unchanged for the twelfth consecutive month, with the one-year and five-year tenors holding at 3.0% and 3.5%, respectively.