Philadelphia Fed President Anna Paulson stated publicly that she favors holding interest rates at current levels and would only support cuts if sustained, measurable progress on inflation is demonstrated. Her comments align with a broader Fed consensus resisting White House pressure for easing, reinforcing market expectations of a prolonged pause through much of 2026.
For Armada's traditional repo desk, a sustained rate hold keeps SOFR elevated, maintaining healthy spread dynamics on Treasury and agency collateral but also sustaining borrowing costs for hedge fund and asset manager counterparties. Pricing models and term repo negotiations should reflect an extended hold baseline rather than pricing in imminent cuts.