Newly appointed Federal Reserve voting member: If the economy remains stable, further rate cuts may be possible later this year.

[New Fed Voting Member: Further Rate Cuts Possible Later This Year if Economy Stabilizes] According to Mars Finance, on January 5th, Anna Paulson, a newly appointed Fed voting member for 2026 and president of the Philadelphia Fed, stated that if the economic outlook remains benign, a moderate additional rate cut later in 2026 might be appropriate. "I expect inflation to moderate, the labor market to stabilize, and economic growth to be around 2% this year. If all of these occur, then some moderate further adjustments to the federal funds rate later this year would likely be appropriate." Paulson also stated that risks to the labor market remain high, with the slowdown in labor demand exceeding the supply contraction caused by the Trump administration's immigration policies. "While the labor market is clearly under pressure, it hasn't collapsed."