Fed’s Paulson sees room for further rate cuts in 2025

Fed Governor Jane Paulson projected additional rate reductions this year, noting that economic conditions likely support about 50 basis points of easing before year-end. She suggested that if inflation continues to moderate, additional cuts could extend into 2027. Paulson’s remarks come as the central bank balances growth support with inflation risks. Markets interpreted this as dovish. Investors will watch upcoming inflation and labour data for cues on the Fed’s path forward.