Philadelphia Fed President highlights persistent inflation pressures and cautious business planning amid modest economic expansion.
Philadelphia Federal Reserve President Anna Paulson stated inflation remains too high and is dragging on the US economy. She noted firms struggle with future planning due to elevated uncertainty, though monetary policy is positioned at mildly restrictive levels.
Paulson added inflation was excessive even before geopolitical conflicts escalated. The economy continues modest growth, with consumer spending slowing but unemployment near full-employment levels. Households and businesses remain cautious about the outlook.
The remarks underscore ongoing concerns about inflation’s impact on economic stability despite recent signs of moderation.