Anna Paulson, new president of the Federal Reserve Bank of Philadelphia, praises Jerome Powell and signals her preference to maintain current interest rates while closely monitoring inflation and labour market data.
Anna Paulson, the newly installed president of the Federal Reserve Bank of Philadelphia, publicly lauded Federal Reserve Chair Jerome Powell while signalling she is comfortable leaving interest rates unchanged at the Fed’s January meeting.
Speaking to the Wall Street Journal in her first national interview since taking office last July, Paulson said Powell “has been a very effective chair”, adding a personal flourish that even her 20-year-old son sends her internet memes celebrating Powell. Her remarks come days after Powell disclosed he faces a criminal investigation related to the renovation of the Fed’s Washington headquarters, a probe Powell characterised as being motivated by President Trump’s desire for lower interest rates. “His statement was really strong. I think it really speaks for itself,” Paulson told the newspaper, joining several Fed colleagues who have this week vouched for Powell’s integrity.
Paulson, who will be a voting member on the Federal Open Market Committee this year, has backed the Fed’s recent easing path and supported the central bank’s decision in December to lower the federal funds rate to a range between 3.5% and 3.75%. She said she is “comfortable” maintaining the current level of policy at the January 27–28 meeting, describing rates as slightly above neutral and as appropriate “for finishing the job of bringing inflation down.” She added: “I want monetary policy restrictiveness to be playing a role to get us all the way back to 2%.”
Her assessment of the outlook is consistent with comments she has made publicly since her appointment in April 2025, when she succeeded Patrick Harker after a long career at the Federal Reserve Bank of Chicago. According to the Philadelphia Fed, Paulson has repeatedly emphasised that past and current monetary policy restrictiveness, together with other factors, should help bring inflation back toward the 2% core PCE target by year end.
Paulson signalled openness to modest rate reductions later in 2026 if incoming data on inflation and the labour market move in the expected direction. She said any easing would likely follow confirmation that price pressures are abating or if job-market conditions unexpectedly deteriorate, and singled out January price data as particularly important because firms often reset prices at the start of the year.
Her outlook reflects a recurring theme in her speeches: a cautious optimism on inflation paired with concern about labour-market softness. In December 2025 she told reporters her main worry was labour market weakness rather than upside inflation risks, and she has argued that the earlier surge in prices was driven in large part by temporary factors such as tariffs. According to a Philadelphia Fed commentary from October 2025, Paulson has said tariffs raise the price level but do not leave a lasting imprint on inflation, and that monetary policy should “look through” those effects while balancing risks to employment and price stability.
Industry observers note that Paulson’s positions place her among policymakers who see value in keeping policy a touch restrictive to secure a durable return to 2% inflation, but ready to pivot should the data warrant. Government and Fed figures cited in her recent remarks point to strong GDP growth alongside a cooling labour market, a combination she described at the 2026 Allied Social Science Associations Annual Meeting as requiring clarity in economic signals for the year ahead.
While Paulson’s public support bolsters Powell at a sensitive moment, her comments also underscore the pragmatic stance many Fed officials have adopted: hold policy steady now, monitor incoming data closely, and be prepared to adjust as inflation and employment trends evolve.
- https://ca.investing.com/news/economy-news/philadelphia-feds-paulson-praises-powell-signals-rate-stance-93CH-4404838 – Please view link – unable to able to access data
- https://www.philadelphiafed.org/the-economy/monetary-policy/251013-philadelphia-feds-paulson-tariffs-will-not-leave-lasting-imprint-on-inflation – In October 2025, Anna Paulson, President and CEO of the Philadelphia Federal Reserve, stated that tariffs would increase the price level but not leave a lasting imprint on inflation. She emphasized that monetary policy should look through tariff effects on prices, focusing on balancing risks to maximum employment and price stability. Paulson also noted that the Federal Open Market Committee’s decision to cut rates by 25 basis points in September made sense against the backdrop of increasing labor market risks. Looking ahead to 2026, she anticipated growth near potential and inflation subsiding as tariffs and monetary policy restrictiveness work through the economy.
- https://apnews.com/article/c5fcee8479e347146eca6688196caa4f – In April 2025, Anna Paulson was appointed as the new president of the Federal Reserve Bank of Philadelphia, succeeding Patrick Harker. At 60, Paulson brought extensive experience from her role as executive vice president and director of research at the Federal Reserve Bank of Chicago, where she had served for over 20 years. Known for her work on financial markets and for founding the Insurance Initiative, she was set to participate in setting U.S. interest rates and have a vote on the Federal Reserve’s rate-setting committee beginning in 2026. She would also oversee the Philadelphia Fed’s regulation of banks and its management of payment services.
- https://www.philadelphiafed.org/the-economy/monetary-policy/260103-thoughts-on-the-us-economy-and-the-year-ahead – In January 2026, Anna Paulson shared her perspective on economic issues at the 2026 Allied Social Science Associations Annual Meeting. She expressed cautious optimism about inflation, anticipating it would return to levels consistent with the 2% core PCE inflation target by the end of the year. Paulson viewed the current level of the funds rate as still a little restrictive, believing that past and current monetary policy restrictiveness would help bring inflation down to 2%. She also discussed the U.S. economy’s growth and employment, noting strong GDP growth but a slowing labor market, and emphasized the need for clarity in economic signals for 2026.
- https://finance.yahoo.com/news/feds-paulson-says-monetary-policy-130430638.html – In December 2025, Anna Paulson expressed concern about the state of the job market, stating that her main concern was labor market weakness rather than upside risks to inflation. She noted that inflation was expected to come down as tariff impacts waned, which had been the main driver of price pressures overshooting the target that year. While not offering forward-looking comments on central bank interest rate policy, she indicated that with the funds rate at 3.5 to 3.75 percent, monetary policy was somewhat restrictive.
- https://www.philadelphiafed.org/the-economy/monetary-policy/260103-thoughts-on-the-us-economy-and-the-year-ahead – In January 2026, Anna Paulson shared her perspective on economic issues at the 2026 Allied Social Science Associations Annual Meeting. She expressed cautious optimism about inflation, anticipating it would return to levels consistent with the 2% core PCE inflation target by the end of the year. Paulson viewed the current level of the funds rate as still a little restrictive, believing that past and current monetary policy restrictiveness would help bring inflation down to 2%. She also discussed the U.S. economy’s growth and employment, noting strong GDP growth but a slowing labor market, and emphasized the need for clarity in economic signals for 2026.
- https://finance.yahoo.com/news/feds-paulson-reiterates-more-rate-145309295.html – In January 2026, Anna Paulson reiterated her expectation that the Federal Reserve could lower short-term interest rates later in the year if the economy met her expectations of moderating inflation and job market stabilization. She expressed a benign outlook, with inflation moving back to around 2% by year-end amid a stabilization in the job market and growth around 2%. Paulson indicated that if these conditions were met, modest further adjustments to the funds rate would likely be appropriate later in the year.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on January 15, 2026, and reports on Anna Paulson’s recent interview with the Wall Street Journal. A similar report was published on January 14, 2026, by Investing.com, indicating that the content is fresh. ([investing.com](https://www.investing.com/news/economy-news/philadelphia-feds-paulson-praises-powell-signals-rate-stance-93CH-4450462?utm_source=openai))
Quotes check
Score:
7
Notes:
The article includes direct quotes from Anna Paulson, such as her praise for Jerome Powell and her comfort with maintaining current interest rates. These quotes are consistent with her previous public statements, including her January 3, 2026, speech at the Allied Social Science Associations Annual Meeting. ([philadelphiafed.org](https://www.philadelphiafed.org/the-economy/monetary-policy/260103-thoughts-on-the-us-economy-and-the-year-ahead?utm_source=openai)) However, the exact wording of the quotes in the article cannot be independently verified, as the original interview transcript is not publicly available.
Source reliability
Score:
8
Notes:
The article is published on Investing.com, a financial news website. While Investing.com aggregates content from various sources, it is generally considered a reputable platform for financial news. The article cites the Wall Street Journal as the primary source, which is a major news organisation known for its credibility. However, the lack of direct access to the original Wall Street Journal article limits the ability to fully assess the source’s reliability.
Plausability check
Score:
9
Notes:
The article’s claims align with known events and statements. Anna Paulson has publicly supported Jerome Powell and indicated a preference for maintaining current interest rates, consistent with her previous remarks. Additionally, the Department of Justice’s investigation into Powell’s testimony regarding the Federal Reserve’s building renovations is a well-documented event. ([apnews.com](https://apnews.com/article/bf4fc6c690fa248fbc531bc9bc7f1758?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article provides a plausible and timely report on Anna Paulson’s support for Jerome Powell and her stance on interest rates. While the content aligns with known events and statements, the inability to independently verify the exact wording of the quotes and the reliance on secondary sources introduce some uncertainty. Therefore, the overall assessment is a PASS with MEDIUM confidence.