Philadelphia Federal Reserve President Anna Paulson stated on 24 September 2026 that she and her colleagues may need to raise interest rates further to bring inflation back to the Fed's 2% target, describing the anticipated moves as 'modest'. Paulson indicated the central bank's tightening cycle may not yet be complete. The remarks were reported by CNBC, Finnhub, and Bloomberg Markets.
Paulson's comments bear directly on US Treasury markets. The US 2-year Treasury note (US2Y) is sensitive to near-term Federal Reserve rate expectations, while the US 10-year Treasury note (US10Y) reflects longer-duration rate and inflation pricing. TLT and IEF, exchange-traded funds tracking long- and intermediate-duration US Treasuries respectively, move inversely to yield changes driven by Fed rate signals. The US Dollar Index (DXY) tracks the dollar against a basket of major currencies and is affected by shifts in US interest rate expectations.
Paulson serves as president of the Federal Reserve Bank of Philadelphia. Her remarks reflect a policy stance aligned with the Fed's stated inflation mandate. No dissenting official commentary or formal policy statement accompanied her remarks as reported by the cited sources.
Sources: Cnbc TOP, CNBC, Bloomberg Markets