World Economy

Fed's Paulson Signals More Rate Increases Likely Ahead

Federal Reserve Bank of Philadelphia President Anna Paulson said Thursday that modest further interest-rate increases may be necessary to return inflation to the central bank's 2% target. Paulson joined other policymakers in suggesting the Fed is not finished tightening monetary policy. Global central banks face similar pressures. Ghana's central bank held its benchmark rate steady for a third consecutive meeting, citing elevated grain and energy prices from geopolitical tensions. Mexico's central bank also maintained borrowing costs as officials await clearer inflation signals. Brazil's central bank cut its 2026 economic growth forecast and warned that tight monetary policy will restrain economic activity through 2027. The divergent regional approaches reflect policymakers' struggle to balance inflation control against mounting economic headwinds.