Philadelphia Fed President Paulson says current rates may be enough to cool inflation

Philadelphia Fed President Anna Paulson said Tuesday that she believes the central bank’s current interest rate level is likely sufficient to keep inflation moving toward its 2% target. In her first CNBC interview, Paulson said last week’s decision to leave the Fed’s benchmark rate unchanged was not a difficult one for her, even though the Federal Open Market Committee split 93 on the move. Paulson said she views policy as mildly restrictive and wants to see more evidence that inflation is continuing to ease. She added that if progress stalls, she would be open to adjusting monetary policy. She also said she is open to discussing changes Federal Reserve Chair Kevin Warsh has raised, including the possibility of fewer FOMC meetings each year.