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flag Philadelphia Fed's Paulson backs more rate cuts due to weakening jobs and persistent inflation, with officials favoring gradual reductions.

flag Philadelphia Fed President Anna Paulson said more interest rate cuts are likely as labor market weakness grows, with job gains narrowing to health care and social assistance, while inflation remains above target. flag She supported the recent 25-basis-point cut, citing tariffs and slowing job momentum, though she downplayed long-term inflation risks. flag Other Fed officials echoed calls for cautious, gradual rate reductions. flag NABE panelists project one more 2025 cut and further cuts in 2026, with GDP forecasts raised to 1.8% in 2025 and 1.7% in 2026, despite rising long-term unemployment and layoffs.

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