Federal Reserve New Voting Member Paulsen: Rate cuts can wait, employment is more concerning than inflation

Philadelphia Fed President Anna Paulson stated that she expects meaningful progress in inflation returning to the Fed's 2% target by the end of this year, but she is satisfied with maintaining stable interest rates at the upcoming Federal Reserve meeting scheduled for January 27-28.
She believes that interest rates are still sufficiently high, slightly above the neutral level that neither stimulates nor restrains growth, and she considers maintaining this level appropriate at the moment to help achieve the goal of lowering inflation. "I hope the restrictive nature of monetary policy can work to bring us back to the 2% target," she said.
However, Paulson indicated that she might lean towards a modest rate cut later this year, contingent on either inflation data confirming her expectations—that price pressures are easing—or evidence showing that the employment market is unexpectedly worsening.