(2/2) Brainard on CNBC con't: - On rate move....>

FED: (2/2) Brainard on CNBC con't:

- On rate move in December: FOMC has made 3 rate cuts. Will continue to monitor

and assess how the economy is reacting to those cuts. Starting to see

improvement in residential sector, which is what you would expect in low rate

environment.

- On FOMC's bar to hike vs cut (re Powell's criterion of inflation above 2% for

'sustained' period): I would be looking carefully at incoming data, if some set

of factors that call for material change in outlook. Balance of risks has been

tilted to the downside for some time, as we assess potential upside risks to the

economy, they seem to be less prominent.

- On systemic risks building in financial markets: Worried about financial

imbalances rising. One area that merits heightened vigilance is in the area of

business debt, particularly among risky borrowers. Macroprudential tools

appropriate, don't see monetary policy as first line of defense.