More Q&A: Q: What does FOMC weight most:........>

FED: More Q&A:

Q: What does FOMC weight most: lower r*, trade, lower NAIRU etc. Why will 25bps

work?

- A: Different people have different weightings on those. 25bps cut working? Not

the right question. Monetary policy is working.

Q: Another question re confusion over Fed's threshold for further cuts.

- A: All I can tell you is that we will be looking at weaker global growth.

Every cycle you learn about these things. Would love to be more precise but with

trade, it's a factor we need to assess in a new way.

Q: Hike last Dec seen by some as a step too far. Could some of the weakness on

the business side be because the Fed waited so long to cut? Why this 25bps nudge

the right level?

- A: We don't hear that businesses are not investing because the Fed funds rate

is too high. Wouldn't lay weakness all at the door of trade talks; there's a

global business cycle that's a bigger factor than we expected. We believe 25bps

the right move for today.