Anna Paulson, the new president of the Philadelphia Federal Reserve and a 2026 FOMC voting member, emphasized there is no urgency to cut interest rates, citing greater risks to the labor market than inflation. In her first national media interview, Paulson supported Federal Reserve Chair Jerome Powell's leadership and the central bank's independence. She noted that current rates are slightly above neutral, aiding in steering inflation towards the 2% target. Paulson expressed satisfaction with maintaining the current interest rate at the January meeting, anticipating significant inflation progress this year. She stated that any rate cuts would depend on continued inflation easing and labor market stability. Paulson highlighted that recent job growth is concentrated in healthcare and social assistance, with labor market cooling exceeding expectations. She warned that a shift from "slowing" to "collapsing" in the labor market would be a critical warning. Known for her dovish stance, Paulson prioritizes preventing labor market disruptions while ensuring inflation targets are met.