Paulson Suggests Modest Rate Hikes May Be Needed for Inflation Control

Anna Paulson, president of the Federal Reserve Bank of Philadelphia, suggested that further interest rate increases may be necessary to ensure inflation returns to the central bank's target of 2%. In a statement prepared for an event in Philadelphia on Thursday, September 24, 2026, at 2:10 PM UTC, Paulson said 'Looking ahead, if conditions evolve as I expect, some modest further tightening may be warranted.'

This implies that the central bank is not yet satisfied with the current state of inflation and believes additional rate hikes will be needed to achieve its goal. The exact timing and magnitude of these potential increases are unclear, but Paulson's statement suggests a cautious approach.