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RBA: Minutes of the Monetary Policy Meeting of the Reserve Bank Board
Members commenced their discussion of financial conditions by considering policy settings at other advanced economy central banks. The US Federal Reserve (Fed), the Bank of Canada and the Reserve Bank of New Zealand (RBNZ) had all reduced their policy rates further since the previous meeting, in large part because of softening labour markets. In the United States, the softening labour market had led the Fed to ease policy, notwithstanding some evidence of higher tariffs beginning to be passed through to consumer prices. Market participants anticipated that the Fed would ease policy further in 2026. Additional easing ... (full story)
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FED’S PAULSON: FAVORS GRADUAL PATH OF RATE CUTS OVER THIS YEAR INTO NEXT 
Paulson: Economic Outlook Good afternoon, everyone, and thank you, Greg, for that very kind introduction. It is a pleasure to welcome you all to Philadelphia for this year’s NABE Annual Meeting. I’m especially glad to be here with all of you — people who think deeply about the economy and how economic developments impact families, businesses, and communities across the country. As an economist, I’ve learned as much from direct conversations with some of those families, businesses, and communities as I have from studying data and models. That’s why I feel such a strong connection to NABE and the work that you all do. As you know, the Federal Reserve System is committed to serving the public by fostering conditions that lead to stable prices and maximum employment. As president of the Philadelphia Fed, I look deeply and widely at the economic data and complement that with perspectives I’ve gained from talking directly with people in the communities we serve. Those conversations allow me to bring regional insights to our broader analysis of the economy and monetary policy. And they help me to keep front of mind the ways in which Federal Open Market Committee (FOMC) decisions impact all of us. FED’S PAULSON: UNCLEAR WHAT NEUTRAL RATE IS, ARGUES FOR CAUTION IN RATE CUT PACE || SEPTEMBER FED RATE CUT SIZE ‘MADE SENSE’ || EXPECTS TARIFFS TO PUSH UP INFLATION BUT WON’T CAUSE PERSISTENT INCREASE Fed's Paulson: I see current monetary policy as modestly restrictive.
Paulson: Economic Outlook Good afternoon, everyone, and thank you, Greg, for that very kind introduction. It is a pleasure to welcome you all to Philadelphia for this year’s NABE Annual Meeting. I’m especially glad to be here with all of you — people who think deeply about the economy and how economic developments impact families, businesses, and communities across the country. As an economist, I’ve learned as much from direct conversations with some of those families, businesses, and communities as I have from studying data and models. That’s why I feel such a strong connection to NABE and the work that you all do. As you know, the Federal Reserve System is committed to serving the public by fostering conditions that lead to stable prices and maximum employment. As president of the Philadelphia Fed, I look deeply and widely at the economic data and complement that with perspectives I’ve gained from talking directly with people in the communities we serve. Those conversations allow me to bring regional insights to our broader analysis of the economy and monetary policy. And they help me to keep front of mind the ways in which Federal Open Market Committee (FOMC) decisions impact all of us. FED’S PAULSON: UNCLEAR WHAT NEUTRAL RATE IS, ARGUES FOR CAUTION IN RATE CUT PACE || SEPTEMBER FED RATE CUT SIZE ‘MADE SENSE’ || EXPECTS TARIFFS TO PUSH UP INFLATION BUT WON’T CAUSE PERSISTENT INCREASE Fed's Paulson: I see current monetary policy as modestly restrictive.
