Fed's Paulson tells CNBC it is right to look through supply shocks
TLT•Paulson says the Fed should look through supply shocks
Aug. 4 (Reuters) - Federal Reserve Bank of Philadelphia President Anna Paulson said Tuesday it was right for the central bank to look through the energy shock and not react by changing monetary policy.
“I've definitely been in the of the view that you should look through supply shocks,” Paulson said in an interview on CNBC that followed the release of a statement that said she was keeping an open mind about the future of monetary policy.
Paulson said that if the Fed had responded to the recent energy shock with rate policy, the response would likely have been mistimed given shifts in market prices.
