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Final Question On Financial Conditions

FED
  • Last Q: How do you view financial conditions right now? What situation would warrant a rate cut? Discussed QT?
  • A: Haven't discussed changing the balance sheet implementation. Always willing to change if we conclude that it's appropriate.
  • Fin conditions have probably tightened more than traditional indices (with rates/equities) say. The question is how significant will that be and what will be the extent and duration of it. Once you know that, there's a fair amount of research about how that works its way into the economy over a period of time.
  • Rate cuts are not in our base case. That's all I have to say.
  • PRESS CONFERENCE ENDS.

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