In her first speech as head of the Philadelphia Federal Reserve, Anna Paulson said on Monday that rising risks to the job market argue for more interest rate cuts by the U.S. central bank, as trade tariffs are unlikely to push up inflation as much as expected.

“Given my views on tariffs and inflation, monetary policy should be focused on balancing risks to maximum employment and price stability, which means moving policy towards a more neutral stance,” Paulson said in the text of a speech to be presented before a gathering of the National Association for Business Economics in Philadelphia.

“Labor market risks do appear to be increasing – not outrageously, but noticeably. And momentum seems to be going in the wrong direction,” so that now deserves to be the focus of policy, she said.

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