**MNI POLICY: FOMC Cuts Rates; Signals Pause To Monitor Data>

--Deletes 'Will Act As Appropriate' To Sustain Expansion

--Uncertainties Remain; To Continue to Monitor Incoming Data

--Job Growth Solid But Inflation Still Running Below 2%

By Jean Yung

     WASHINGTON (MNI) - The Federal Reserve on Wednesday lowered its 

benchmark interest rate by a quarter-point as widely expected and 

signaled that it would likely refrain from cutting rates further in the 

near future. 

     The post-meeting policy statement removed a pledge that the Federal 

Open Market Committee would "act as appropriate" to sustain the 

expansion, a phrase that had become synonymous with readiness to lower 

interest rates amid escalating trade wars and a global slowdown. 

     Instead, the Fed said that it would "continue to monitor the 

implications of incoming information for the economic outlook as it 

assesses the appropriate path of the target range for the federal funds 

rate." 

     The following are other key points from the FOMC statement released 

Wednesday: 

     --Rates target lowered to 1.50% to 1.75%, with Boston Fed President 

Eric Rosengren and Kansas City Fed President Esther George dissenting in 

favor of keeping rates where they are. 

     --Economic outlook is little changed since September. Jobs gains 

have been "solid" and the unemployment rate has remained low. Household 

spending has been rising "at a strong pace," but business fixed 

investment and exports "remain weak." 

     --While a strong labor market and inflation around 2% 

remain the "most likely outcomes," the Fed repeated that "uncertainties 

about this outlook remain." 

     --No new announcements regarding asset purchases or a standing repo 

facility. The IOER was lowered to 1.55% from 1.80% as expected. 

--MNI Washington Bureau, Tel: +1 202-371-2121; email: dcoffice@marketnews.com

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

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