*** Bank desk reactions to the FOMC.........>

US VIEW: *** Bank desk reactions to the FOMC MonPol decision (3/3):

- Westpac: The statement from the May FOMC meeting carried only modest changes

in wording, but they were meaningful nonetheless, highlighting that the FOMC is

optimistic on the outlook and intent on continuing to raise rates at a gradual

pace. On inflation, there was no evidence they see it threatening the 2.0%

medium-term target; indeed, quite the opposite. On economic activity, the

changes made were matter of fact. Following GDP's confirmation of a

disappointing March quarter for the consumer, the moderation in growth the

sector has experienced was given greater prominence. However, that this bout of

weakness comes after a strong December quarter means there is (as yet) no cause

for concern.