Paulson: Focus on employment risks, monetary policy remains restrictive

Jinse Finance reported that Philadelphia Federal Reserve President Harker stated that she is currently most concerned about the state of the labor market, believing that the current monetary policy stance should help bring inflation back to the 2% target. She is slightly more worried about labor market weakness than about the risk of rising inflation, and pointed out that as the impact of tariffs gradually fades next year, inflation may gradually decline. Harker emphasized that monetary policy remains somewhat restrictive, and the cumulative effects of past tightening policies will help inflation return to target.