(1/2): Fed Gov. Brainard in rare interview on...>

FED: (1/2): Fed Gov. Brainard in rare interview on CNBC. Leaning glass half-full

on outlook but toeing line of fellow Fed board members. Highlights:

- On trade outlook: Trade uncertainty a major factor weighing on the economy for

the past year. We've taken out insurance against trade conflict. Even a truce

would be a significant reduction in uncertainty for businesses. More tariffs in

December would be a negative development.

- On weak Fed Nowcasts figures for Q4 2019: They are much lower than consensus.

We expected some kind of moderation in H2, but don't forget, the US consumer has

proven enormously resilient... consumer businesses continue to be quite upbeat.

- On the 2020 outlook: Saw special factors weighing on manuf that should bounce

back in Q1 2020. But next year see economy growing slightly +trend, tightening

in v strong labour market, inflation moving to 2 and hopefully slightly above

2%. Domestic economy powered by consumer, +trend growth over next 1-1.5 years.

- On Trump's call for negative rates: [Cites dual mandate]. Relative to some

negative rate economies, U.S. is much stronger. [Re Q of whether Fed would try

to weaken dollar] Outside our jurisdiction.