Svmuu News Federal Reserve On Wednesday, Paulson reiterated that she expects the Federal Reserve to cut short-term interest rates later this year if the economy performs in line with her expectations of moderating inflation and a stable job market. In remarks prepared for an event hosted by the Greater Philadelphia Chamber of Commerce, Paulson said: “"My baseline outlook is quite moderate," predicting that inflation will fall back to around 2% by year-end, the labor market will stabilize, and economic growth will remain at around 2%. She noted: "If all of this happens, then some modest adjustments to the federal funds rate later this year may be appropriate.""Regarding the labor market, Paulson reiterated, "The labor market is clearly slowing, but it is not collapsing." She believes risks are rising, which was one of the key reasons she supported the FOMC’s 75-basis-point rate cut last year. (Jin Shi)