Fed's Paulson Sees More Risks to Labor Than Inflation

Watch Fed's Paulson Sees More Risks to Labor Than Inflation - Bloomberg on Dailymotion

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00:00on net i am still a little more concerned about labor market weakness than i am about

00:05upside risks to inflation and that's partly because i see a decent chance that inflation

00:10will come down as we go through next year i attribute most of the increases in goods

00:15inflation in 2025 to tariffs and i expect the bulk of these effects to disappear by the middle

00:21of next year i also expect housing inflation to continue to improve data on new tenant rents and

00:28other market indicators give me confidence that this part of inflation will continue to head down

00:33of course even if these things both end up happening inflation would still be elevated

00:37probably in the neighborhood of around two and a half percent and above our two percent goal

00:43but with the fed funds rate currently at three and a half to three point seven five percent

00:47i continue to see monetary policy as somewhat restrictive so that level of race together

00:53with the cumulative effect of past monetary policy restrictiveness should help to bring inflation

00:58inflation back to two percent

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