Sixth Straight Year: Fed's Inflation Target Continues to Elude

Anna Paulson, President and CEO of the Federal Reserve Bank of Philadelphia, spoke at the 10th Annual Fintech Conference in Philadelphia on September 24th. She noted that her views are her own and not necessarily those of the Federal Reserve System or the Federal Open Market Committee (FOMC).

Paulson supported the FOMC's recent 25 basis point rate hike, but suggested 'some modest further tightening may be warranted' to combat inflation. This implies that the fight against inflation remains unfinished despite years of policy action.

Notably, Paulson acknowledged that this marks the sixth consecutive year at this conference where inflation has remained above the Fed's 2 percent target. She described underlying inflation as running between 2.5 and 3 percent, which is higher than the official target.