**MNI POLICY: FOMC Cuts By 25 bps, Repeats 'Will Act As Approp'>

--Rate Cuts Due to Global Developments, Muted Inflation

--Uncertainties Remain; To Continue to Monitor Incoming Data

--George, Rosengren Dissent In Favor of No Cut

By Jean Yung, Kevin Kastner, Alexandra Kelley and Brooke Migdon

     WASHINGTON (MNI) - The following are the key points from the 

FOMC statement released Wednesday:

     --The FOMC cut rates by a quarter point to a target range of 2.00% 

to 2.25% as expected and ended quantitative tightening two months 

earlier than planned (as of Aug. 1). Dissenters Esther George and Eric 

Rosengren favored no cut at this meeting. 

     --Repeated guidance that it will "act as appropriate to sustain the 

expansion." Officials will "continue to monitor" incoming information, 

as uncertainties to the outlook "remain." That language signals slightly 

less worry over the outlook compared to June, when the committee said 

uncertainties "have increased" and it would "closely monitor" the 

situation. 

     --Rate cut justified by "implications of global developments for 

the economic outlook as well as muted inflation pressures." Sustained 

growth, a strong labor market and inflation near 2% remain the most 

likely outcomes. 

     --Minor revisions to economic review in first paragraph. Growth 

"has been rising at a moderate rate." Household spending "has picked up" 

but business investment "has been soft." Market-based measures of 

inflation compensation "remain low." 

     --No technical adjustment to IOER rate other than to lower it to 

2.10%. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MT$$$$,MMUFE$,MGU$$$,M$U$$$,MAUDR$]